# ASC 810-978-25: Consolidation — Real Estate—Time-Sharing Activities — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/978/#25-recognition) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:34:24.202Z to 2026-09-10T01:34:24.202Z Record version: sha256:f6025721fbb8267ba3462db4b2411ee02f5fb3185f9030ac11da23bf67bc3534 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-978-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/810/978/#25-recognition) SEC content: no ##### [810-978-25-1](https://asc.understandingaccounting.org/asc/810/978/#810-978-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:24.202Z to 2026-09-10T01:34:24.202Z Record version: sha256:98bcf79dc0e1b78aca4c6bff9f56c728c1800db7f77475f442e20167bda7f7a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A seller may establish a [special-purpose entity](https://asc.understandingaccounting.org/glossary/s/#time-sharing-special-purpose-entity "An entity, typically a corporation or a trust, to which a seller transfers time-sharing real estate in exchange for the entity's stock, membership interests, or beneficial interests."). ##### [810-978-25-2](https://asc.understandingaccounting.org/asc/810/978/#810-978-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:24.202Z to 2026-09-10T01:34:24.202Z Record version: sha256:aab04b2ce1c63b3efaea2f033ef77ad9bed51d8c02b3fbf33f99247d20cead4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 810 provides guidance on whether special-purpose entities that are variable interest entities (VIEs) should be consolidated. ##### [810-978-25-3](https://asc.understandingaccounting.org/asc/810/978/#810-978-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:24.202Z to 2026-09-10T01:34:24.202Z Record version: sha256:24d897cb1b329a61d4028132dd3079fc30fc795da7e9e242b4bcef2506333370 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/t/#time-sharing "An arrangement in which a seller sells or conveys the right to occupy a dwelling unit for specified periods in the future. Forms of time-sharing arrangements include but are not limited to fixed and floating time, interval ownership, undivided interests, points programs, vacation clubs, right-to-use arrangements such as tenancy-for-years arrangements, and arrangements involving special-purpose entities. In this context, an undivided interest is a time-sharing arrangement that involves a tenant-in-common interest in a condominium unit or entire improved property, and in which the interest holder is assigned a specific period (generally, a specific week). The interest holder is also assigned a specific unit if the undivided interest is in the entire improved property.") 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). ##### [810-978-25-4](https://asc.understandingaccounting.org/asc/810/978/#810-978-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:24.202Z to 2026-09-10T01:34:24.202Z Record version: sha256:e1cdc36e50b62328194580bdb92edba5925a2833d9d8c601a4fdbcf6320a395f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.