{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/978/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"810","topic_title":"Consolidation","subtopic":"810-978","subtopic_title":"Real Estate—Time-Sharing Activities","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-978-25-1","para":"25-1","html":"
A seller may establish a special-purpose entity.
","snippet":"A seller may establish a special-purpose entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98bcf79dc0e1b78aca4c6bff9f56c728c1800db7f77475f442e20167bda7f7a9","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}},{"citation":"810-978-25-2","para":"25-2","html":"
Topic 810 provides guidance on whether special-purpose entities that are variable interest entities (VIEs) should be consolidated.
","snippet":"Topic 810 provides guidance on whether special-purpose entities that are variable interest entities (VIEs) should be consolidated.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aab04b2ce1c63b3efaea2f033ef77ad9bed51d8c02b3fbf33f99247d20cead4e","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}},{"citation":"810-978-25-3","para":"25-3","html":"
For balance-sheet presentation purposes, a special-purpose entity shall be viewed as an entity lacking economic substance and established solely for the purpose of facilitating sales if both of the following conditions are met:
  1. a
    The special-purpose entity structure is legally required by the applicable jurisdiction(s) to sell time-sharing intervals to the nonresident customers that the developer-seller wishes to sell to (for example, for purposes of being able to sell intervals to United States citizens in a country in which citizens of other countries are not allowed to own real estate).
  2. b
    The special-purpose entity has no assets, other than the time-sharing intervals, and the special-purpose entity has no debt.
In those circumstances, the seller should show on its balance sheet as time-sharing inventory the interests in the special-purpose entity not yet sold to end users and the seller would not be subject to the consolidation, equity method investment, or cost method investment accounting standards. If a special-purpose entity does not meet the conditions above, the accounting and presentation shall be consistent with investments in other special-purpose entity structures (for example, the consolidation of controlled special-purpose entities and special-purpose entities in which no other entity has adequate capital at risk).
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In such cases, see the following guidance:
  1. a
    The Variable Interest Entities Subsections of Subtopic 810-10 for guidance on whether special-purpose entities that represent VIEs should be consolidated
  2. b
    Topic 810 for consolidation of entities that are not VIEs
  3. c
    Subtopic 323-10 and Topic 321 for the accounting when the investment is not required to be consolidated.
","snippet":"In such cases, see the following guidance:\n(a) The Variable Interest Entities Subsections of Subtopic 810-10 for guidance on whether special-purpose entities that represent VIEs should be consolidated\n(b) Topic 810 for c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1cdc36e50b62328194580bdb92edba5925a2833d9d8c601a4fdbcf6320a395f","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d370ca90284517ae6af73a1b51026e077c3beb5ca7713abbf5d5a53a8ab8ad16","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6025721fbb8267ba3462db4b2411ee02f5fb3185f9030ac11da23bf67bc3534","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6025721fbb8267ba3462db4b2411ee02f5fb3185f9030ac11da23bf67bc3534","downloaded_from":"2026-09-10T01:34:24.202Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478517","source_sha256":"1ae4468e1e0c54e08ff2450f8094f5229e6e1e1f32844e21b616363467696e02"}}