# ASC 978-10-15: Real Estate—Time-Sharing Activities — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/978/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:0d6ea594e7383ec90a9b036a2cf908fd6bcc912d4567581e358e64e583f697f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 978-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/978/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [978-10-15-1](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:3e82ad63ffa3e6e3524e12eda19a80e915d74b5a95ba8f3889ba9cf20069519f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the 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 Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic. #### Entities ##### [978-10-15-2](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:34d4aec394756af2448a3c7e8b63bd0749326187ca56b7baca3d6691dd4c6342 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic provides guidance for all entities that sell real estate [time-share](https://asc.understandingaccounting.org/glossary/t/#time-share "See Interval.") interests. #### Transactions ##### [978-10-15-3](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:3b007c04218388db837b3a609ccb3e9e813c8d1fb43f41e92206a9d2a7a3c65b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the following transactions: 1. a Fee simple transactions in which nonreversionary title and ownership of the real estate pass to the buyer or 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.") 2. b Transactions in which title and ownership of all or a portion of the real estate remain with the seller 3. c Transactions in which title and ownership of all or a portion of the real estate pass to the buyer and subsequently revert to the seller or transfer to a third party 4. d Transactions by a time-share reseller. ##### [978-10-15-4](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:8c9927f7c1019b25f6b0e1228aea3072c0b851d8d8869a4fc631d430a0ed60a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [978-10-15-7 through 15-12](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-7) provide guidance that is useful in determining what constitutes real estate for purposes of this Subtopic. ##### [978-10-15-5](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:f17c4c34eca479477cc88966f975c2f93adb90c2d839f873e09dc5c2d78f3753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following transactions: 1. a Time-sharing transactions in other long-lived assets such as cruise ships, corporate jets, and other kinds of transportation equipment. #### Other Considerations ##### [978-10-15-6](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:15b1ed9d90b3b4db1c7dae72c67bdecb13be783e1c766ac7e8c989383a11100d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Throughout this Topic, reference is made to a [project](https://asc.understandingaccounting.org/glossary/p/#project "A time-sharing development; some projects may be completed in a single phase, such as a single, one-story building containing several time-sharing units. Other projects may be completed in several phases, for example: A hotel that is being converted to time-sharing units one floor at a time while the unconverted units continue to be rented A number of buildings, each containing several time-sharing units, being built on a piece of property over an extended period of time.") or to a [phase](https://asc.understandingaccounting.org/glossary/p/#phase "A contractually or physically distinguishable portion of a real estate project (including time-sharing projects). That portion is distinguishable from other portions based on shared characteristics such as: Units a developer has declared or legally registered to be for sale Units linked to an owners association Units to be constructed during a particular time period How a developer plans to build the real estate project.") of a project. A project may consist of a single phase. A time-share seller shall establish and delineate a project and its phases at the outset of the project. Each phase shall be accounted for separately. #### Determining What Constitutes Real Estate ##### [978-10-15-7](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:c6964885207cc955ea54b91faf9436b2fc992600fbc8f34dc9dcb93fe5531205 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining whether a transaction is in substance the sale of real estate requires judgment. However, in making that determination, one shall consider the nature of the entire real estate component being sold (that is, the land plus the property improvements and [integral equipment](https://asc.understandingaccounting.org/glossary/i/#integral-equipment "Integral equipment is any physical structure or equipment attached to the real estate that cannot be removed and used separately without incurring significant cost.")), and not the land only, in relation to the entire transaction. Further, that determination shall not consider whether the operations in which the assets are involved are traditional or nontraditional real estate activities. For example, if a ski resort is sold and the lodge and ski lifts are considered to be affixed to the land (that is, they cannot be removed and used separately without incurring significant cost), then it would appear that the sale is in substance the sale of real estate. Transactions involving the sale of underlying land (or the sale of the property improvements or integral equipment subject to a lease of the underlying land) shall not be bifurcated into a real estate component (the sale of the underlying land) and a non-real-estate component (the sale of the lodge and lifts). ##### [978-10-15-8](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:1ea35cc376e2e0e77d48259b9036681ed5b1d18efc2c899acecfa9d6a2f28f81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether equipment is integral equipment shall be based on the significance of the cost to remove the equipment from its existing location (which would include the cost of repairing damage done to the existing location as a result of the removal), combined with the decrease in the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the equipment as a result of that removal. ##### [978-10-15-9](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:db1ca1bfc177b06376bfa4cb6078dc9cdf04ad0cc89e116818f901f9096d3914 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At a minimum, the decrease in the fair value of the equipment as a result of its removal is the estimated cost to ship and reinstall the equipment at a new site. If there are multiple potential users of the leased equipment, the estimate of the fair value of the equipment as well as the costs to ship and install the equipment shall assume that the equipment will be sold to the potential user that would result in the greatest net cash proceeds to the seller. ##### [978-10-15-10](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:5164488e2dcfb306e43c6f94f89364e925569101efc60f251d705ba73a7fba03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of the equipment, and the likely use of the equipment by other potential users, shall be considered in determining whether any additional diminution in fair value exists beyond that associated with costs to ship and install the equipment. ##### [978-10-15-11](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:fe2b5a6ccd16a9bc7cfd15a4207004e0828c732476c2ea20808765bb0026b230 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When the combined total of both the cost to remove plus the decrease in fair value exceeds 10 percent of the fair value of the equipment (installed), the equipment is integral equipment. ##### [978-10-15-12](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:09.368Z to 2026-09-10T02:27:09.368Z Record version: sha256:2ecf9bb90c53a066d87e6e99983140084f2133c8431bf75ec9cf053a940f2ec0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The phrase _cannot be removed and used separately without incurring significant cost_ contains both of the following distinct concepts: 1. a The ability to remove the equipment without incurring significant cost 2. b The ability of a different entity to use the equipment at another location without significant diminution in utility or fair value.