# ASC Topic 978: Real Estate—Time-Sharing Activities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/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): 2026-09-10T02:27:02.409Z to 2026-09-10T02:27:14.744Z Record version: sha256:0ad57154c649a42a6af935c87eecf93ec7ffe941f451abffb17eba15df19900a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 978 supplies incremental, industry-specific guidance for real estate time-sharing activities; entities in its scope must still apply all other applicable GAAP (978-10-15-1). The Overall subtopic (978-10) defines the covered transaction structures — fee simple sales, sales where title remains with or reverts to the seller, and reseller transactions — and excludes time-sharing in other long-lived assets such as cruise ships, corporate jets, and transportation equipment (978-10-15-2 through 15-5). It also requires a seller to delineate the time-share project and its phases at the outset and account for each phase separately (978-10-15-6; 978-10-25-1), and it tests whether a transaction is in substance a sale of real estate by looking at the entire real estate component (land plus improvements and integral equipment) without bifurcation (978-10-15-7), with equipment "integral" when removal cost plus the decrease in fair value from removal exceeds 10 percent of the installed fair value (978-10-15-8 through 15-11). The core idea: time-sharing sales — marked by high-volume homogeneous intervals, seller financing, heavy selling and marketing costs, and recovery of the interval with buyer principal forfeiture on default (978-10-05-5) — are accounted for as real estate sales, phase by phase. Source downloaded (UTC): 2026-09-10T02:27:02.409Z to 2026-09-10T02:27:14.744Z Record version: sha256:ccbfd4f8ac5f9063f82b84a0f3c8f895f58f2a97d71f3656695417b906357796 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 978-10: Real Estate—Time-Sharing Activities — Overall ### Machine-generated study aids ```json { "summary": "ASC 978-10 is the Overall subtopic for real estate time-sharing activities, describing the scope of the industry guidance and the transaction structures it covers. It applies to all entities that sell real estate time-share interests — fee simple sales, sales where title remains with or reverts to the seller, and reseller transactions — but not to time-sharing in other long-lived assets like cruise ships or corporate jets. It also supplies the tests for determining what constitutes real estate (including integral equipment) and requires that each phase of a time-share project be delineated at the outset and accounted for separately.", "key_points": [ "This Topic provides only incremental industry-specific guidance; entities in its scope must also comply with all other applicable GAAP (978-10-15-1).", "The guidance applies to all entities that sell real estate time-share interests, including fee simple transactions, transactions where title remains with or reverts to the seller, and transactions by a time-share reseller (978-10-15-2 through 15-3).", "Time-sharing in other long-lived assets such as cruise ships, corporate jets, and transportation equipment is outside the scope (978-10-15-5).", "A time-share seller must establish and delineate a project and its phases at the outset, and each phase must be accounted for separately (978-10-15-6; 978-10-25-1).", "Whether a transaction is in substance a sale of real estate is judged by the nature of the entire real estate component (land plus property improvements and integral equipment), without bifurcating into real estate and non-real-estate components (978-10-15-7).", "Equipment is integral equipment when the cost to remove plus the decrease in fair value from removal exceeds 10 percent of the installed fair value of the equipment (978-10-15-8 through 15-11).", "Time-sharing transactions are characterized by volume-based homogeneous sales, seller financing, high selling and marketing costs, and recovery of the interval with buyer principal forfeiture upon default (978-10-05-5)." ], "categories": [ "Industry-specific", "Inventory and PP&E", "Revenue", "Recognition" ], "audience_level": "intermediate", "student_note": "This Overall subtopic is mostly a scope and definitions gateway — the substantive rules live in the other 978 subtopics (receivables, inventory, deferred costs), and much of the old revenue guidance was superseded by ASU 2014-09 (ASC 606). A common misunderstanding is assuming \"time-sharing\" covers any shared-use asset; ASC 978 applies only to real estate time-shares, not to jets or cruise ships.", "related_topics": [ "978-310", "978-330", "978-340", "606", "842-40", "970" ], "key_concepts": [ "time-share interval", "developer/seller", "integral equipment", "in-substance sale of real estate", "project phase accounting", "exchange program", "fee simple transaction", "time-share reseller" ] } ``` Source downloaded (UTC): 2026-09-10T02:27:02.409Z to 2026-09-10T02:27:02.409Z Record version: sha256:3951afb22a03097f589f224f708516ebcad4af8e03e35bbac7a556cd1dc560a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 978-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/978/10/#00-status) SEC content: no ##### [978-10-00-1](https://asc.understandingaccounting.org/asc/978/10/#978-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:02.409Z to 2026-09-10T02:27:02.409Z Record version: sha256:12816ac3a39eedb6784a2a4537b89beaef8de1f921062967bf61408ef25024ab 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
Exchange (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Fair ValueAddedAccounting Standards Update No. 2014-0905/28/2014
Fractional InterestsAddedAccounting Standards Update No. 2014-0603/14/2014
Integral EquipmentAddedAccounting Standards Update No. 2014-0905/28/2014
Phase (2nd def.)AmendedAccounting Standards Update No. 2014-0603/14/2014
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
978-10-05-1AmendedAccounting Standards Update No. 2016-0202/25/2016
978-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
978-10-05-2AmendedAccounting Standards Update No. 2016-0202/25/2016
978-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
978-10-05-4SupersededAccounting Standards Update No. 2014-0905/28/2014
978-10-05-6AmendedAccounting Standards Update No. 2014-0603/14/2014
978-10-15-4AmendedAccounting Standards Update No. 2014-0905/28/2014
978-10-15-7 through 15-12
AddedAccounting Standards Update No. 2014-0905/28/2014
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. 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. Source downloaded (UTC): 2026-09-10T02:27:14.744Z to 2026-09-10T02:27:14.744Z Record version: sha256:39841880a71663b4578f4f1f4b19616da9615767d421a37c51c42d444847f737 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 978-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/978/10/#25-recognition) SEC content: no ##### [978-10-25-1](https://asc.understandingaccounting.org/asc/978/10/#978-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:27:14.744Z to 2026-09-10T02:27:14.744Z Record version: sha256:a067590466df5f483fc0a7e571bc7a7e7edfbf77893090dac23f96c111eb90fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [978-10-15-6](https://asc.understandingaccounting.org/asc/978/10/#978-10-15-6), a [time-share](https://asc.understandingaccounting.org/glossary/t/#time-share "See Interval.") seller shall establish and delineate 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.") and its phases at the outset of the project and each [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.") shall be accounted for separately.