# ASC 978-10-05: Real Estate—Time-Sharing Activities — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/978/10/#05-overview-and-background) 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): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:9550db179fcfff078fe030f0f28dbadcd8d638734c8659dc0524962b1ef1493c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 978-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/978/10/#05-overview-and-background) SEC content: no ##### [978-10-05-1](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:4151c33258d5abbdc67780ddeebd24f05fbcd89b21b13261ea602e5e89e3d354 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include: 1. a Real Estate—General 2. b Real Estate—Common Interest Realty Associations 3. c Real Estate—Real Estate Investment Trusts 4. d Real Estate—Time-Sharing Activities 5. e Real Estate—Retail Land. See also Subtopic 842-40 for accounting guidance for the sale of real estate that is part of a sale and leaseback transaction. ##### [978-10-05-2](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:c7ca786397a01a433fe8093d54357dd21157ee6dd7d70f3240962e16ee8ece52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate—Time-Sharing Activities Topic addresses the unique accounting and reporting issues for 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. This Topic includes the following Subtopics: 1. a Overall 2. b Statement of Cash Flows 3. c Accounting Changes and Error Corrections 4. d Receivables 5. e Inventory 6. f Other Assets and Deferred Costs 7. g [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 8. h Other Expenses 9. i Consolidation 10. j [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). #### Other Considerations ##### [978-10-05-3](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:b5dc756afde6717045e5600fdee211947f88f692c3f2b530e2c6292924e7cc5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The real estate time-sharing industry has a variety of time-sharing structures used by sellers. The term _developer_ is used interchangeably and synonymously with _seller_ in this Topic. ##### [978-10-05-4](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:520f38e49fd37a186de97b27798338ed06f9c821bcf253dc0667544c2586c6f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [978-10-05-5](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:87933a07969e82aa5998c358141d7a4df578a1829b677ad09a56f5c0260d3d9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Time-sharing transactions are characterized by the following: 1. a Volume-based, homogeneous sales 2. b Seller financing 3. c Relatively high selling and marketing costs 4. d Upon default, recovery of the time-sharing [interval](https://asc.understandingaccounting.org/glossary/i/#interval "The specific period (generally, a specific week) during the year that a time-sharing unit is specified by agreement to be available for occupancy by a particular customer. Also denoted Time-Sharing Interest or Time-Share.") by the seller and some forfeiture of principal by the buyer. ##### [978-10-05-6](https://asc.understandingaccounting.org/asc/978/10/#978-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:06.253Z to 2026-09-10T02:27:06.253Z Record version: sha256:cbf5f90ac773efc359268da77d2b61208c35632f59779e5d852b0986d3d1b402 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The time-sharing industry has introduced a variety of transaction structures to differentiate its products and enhance sales volumes. For example, buyers often have the right to exchange periodic use of their time-sharing intervals for use of other time-sharing intervals or for various consumer products, frequently through a third-party exchange entity. In this context, an _exchange_ is the trading, by a purchaser of a time-sharing interval, of that time-sharing interval for a given year for another time interval, another location, or another kind of privilege of ownership. Such trading is often effected through the buyer's membership in an exchange entity. Many developers also offer an internal exchange program. Buyers typically pay a fee for exchange privileges. Time-sharing transactions include the sale of [fixed time](https://asc.understandingaccounting.org/glossary/f/#fixed-time "A time-sharing arrangement in which ownership is passed through a deed and the buyer purchases a specific period (generally, a specific week) during the year.") and [floating time](https://asc.understandingaccounting.org/glossary/f/#floating-time "A time-sharing arrangement in which ownership is passed through a deed but the buyer is not limited to a specific period (generally, a specific week) during the year."), [points](https://asc.understandingaccounting.org/glossary/p/#points "Purchased vacation credits that a buyer may redeem for occupancy at various sites. The number of points redeemed depends on such factors as unit type and size, site location, and season.") (which may be redeemed so that a buyer may occupy a specific property), vacation clubs, and [fractional interests](https://asc.understandingaccounting.org/glossary/f/#fractional-interest "A partial ownership interest in real estate that typically includes larger blocks of time on an annual basis (for example, three weeks or more)."); the use of time-sharing special-purpose entities to hold title to real estate; and the provision of the right to use real estate for a specified period.