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FASB ASC Guide > FASB ASC 978

The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 978 (ASC 978) to address time sharing activities in real estate. Transactions related to time sharing are characterized from other real estate transactions by the following:

• Volume based homogeneous sales
• Seller financing
• High selling and marketing costs
• In default, recovery of the time-share by the seller and a forfeiture of principal by the buyer

As time-sharing companies generally have varied structures, there is more flexibility for these companies in the code than other industries which adopt more homogeneous operation structures.

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