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FASB ASC 13-3 The FASB ASC states that for purposes of recognizing profit on time-sharing transactions,...

FASB ASC 13-3 The FASB ASC states that for purposes of recognizing profit on time-sharing transactions, it is necessary that such transfer be nonreversionary. If the title is reversionary, how should the transaction be recorded?

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As per the Accounting for real estate time sharing transaction guidance provided by the FASB, there shall be a fee simple transactions in which non reversionary title and ownership pass on to the buyer. However, if the title is reversionary, the same shall be accounted as if it were an  operating lease. [ FASB ASC 978-840-25-2]

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