# ASC 810-978: Consolidation — Real Estate—Time-Sharing Activities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/978/) 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): 2026-09-10T01:34:10.635Z to 2026-09-10T01:34:24.202Z Record version: sha256:283784e7009551ac87c12c5a69d54bd016f11b61b00b8eb0f26a8784fa87961e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-978: Consolidation — Real Estate—Time-Sharing Activities ### Machine-generated study aids ```json { "summary": "This Subtopic tells a time-sharing developer-seller how to account for special-purpose entities (SPEs) it establishes in connection with selling time-sharing intervals. If the SPE structure is legally required by the jurisdiction in order to sell intervals to nonresident customers and the SPE holds no assets other than the time-sharing intervals and has no debt, the SPE is viewed as lacking economic substance and existing solely to facilitate sales; the seller then reports the unsold interests in the SPE as time-sharing inventory on its balance sheet rather than applying consolidation or equity/cost method accounting. All other SPEs are evaluated under the normal consolidation, VIE, and investment models.", "key_points": [ "A seller in time-sharing activities may establish a special-purpose entity, and Topic 810 governs whether an SPE that is a variable interest entity must be consolidated (810-978-25-1; 810-978-25-2).", "An SPE is treated as lacking economic substance and established solely to facilitate sales only if both conditions in 810-978-25-3 are met: (a) the SPE structure is legally required by the applicable jurisdiction to sell intervals to the nonresident customers targeted by the developer-seller, and (b) the SPE has no assets other than the time-sharing intervals and no debt.", "When both conditions are met, the seller presents the interests in the SPE not yet sold to end users as time-sharing inventory on its balance sheet and is not subject to consolidation, equity method, or cost method accounting (810-978-25-3).", "If the conditions are not met, accounting and presentation follow the treatment of investments in other SPE structures, including consolidation of controlled SPEs and SPEs in which no other entity has adequate capital at risk (810-978-25-3).", "For SPEs failing the test, apply the Variable Interest Entities Subsections of Subtopic 810-10 for VIEs, Topic 810 for non-VIE consolidation, and Subtopic 323-10 and Topic 321 when the investment is not consolidated (810-978-25-4).", "The Subtopic follows the scope of the Overall Subtopic in Section 978-10-15 (810-978-15-1)." ], "categories": [ "Consolidation", "Presentation", "Industry-specific", "Inventory and PP&E" ], "audience_level": "intermediate", "student_note": "This is a narrow industry exception: a legally mandated, asset-only, debt-free SPE used to sell intervals to foreign buyers is ignored as an entity and its unsold interests are simply shown as inventory. The common mistake is applying this inventory presentation to any developer-created SPE — both conditions in 810-978-25-3 must be met, or you fall back to the ordinary VIE/consolidation analysis.", "related_topics": [ "810-10", "978-10", "978-330", "323-10", "321" ], "key_concepts": [ "special-purpose entity", "variable interest entity", "time-sharing intervals", "time-sharing inventory", "entity lacking economic substance", "consolidation", "equity method investment", "balance sheet presentation" ] } ``` Source downloaded (UTC): 2026-09-10T01:34:10.635Z to 2026-09-10T01:34:10.635Z Record version: sha256:735f58e0b9cd6996265f099679b4f87d147eb7da2f5fa80dc0c1b5360b513c6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-978-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/810/978/#00-status) SEC content: no ##### [810-978-00-1](https://asc.understandingaccounting.org/asc/810/978/#810-978-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:10.635Z to 2026-09-10T01:34:10.635Z Record version: sha256:ff774002f573bcc52e918eed4feffa97428b8404c9208757b2be540c3683df41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
978-810-25-4AmendedAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-10T01:34:14.522Z to 2026-09-10T01:34:14.522Z Record version: sha256:c7cf96c03599766bd6f220b49f7a9a047cd1cf9a8a138eb1b695e483cfe546d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-978-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/810/978/#05-overview-and-background) SEC content: no ##### [810-978-05-1](https://asc.understandingaccounting.org/asc/810/978/#810-978-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:14.522Z to 2026-09-10T01:34:14.522Z Record version: sha256:84e4d74e3238c48bfd103b6e7119f199b1750f76ddbe986428ad3dec1239489a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses consolidation and recognition issues for certain special-purpose entities related to real estate [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.") activities. Source downloaded (UTC): 2026-09-10T01:34:17.931Z to 2026-09-10T01:34:17.931Z Record version: sha256:968eb5ab35dbfac9808ddc4c1bdb54437540090729bf0f88c7bf94b1eecc5359 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-978-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/810/978/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [810-978-15-1](https://asc.understandingaccounting.org/asc/810/978/#810-978-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:34:17.931Z to 2026-09-10T01:34:17.931Z Record version: sha256:70a4dd49420464acba23810fdccc1a4ff3639153de0579d0ed3403af0fc43cd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15. 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.