Island Tower at Polynesian Villas & Bungalows

[OKW Lover]

It was discussed a few pages ago. There's some pretty good evidence which suggests that DVD doesn't actually book the revenue until a new building has opened. Even if that isn't entirely correct, they would surely have to wait until paperwork is compete, waiting period expires and closing has occurred. Long story short, a sale occurring after 9/1 would be rather easy to push until at least 10/1 (if not 12/17) if that's what Disney wants to do.

Well, I suppose they could just cook the books as it were. But according to GAAP that shouldn't happen.

 

[tjkraz]

Well, I suppose they could just cook the books as it were. But according to GAAP that shouldn't happen.

It's not improper to wait until a project is complete to book revenue associated with it.

 

[Genie+]

Page 16 is the porte cochere https://images.app.goo.gl/pfF77JpxjAFZNPUQ8

So funny they chopped the good part off so nobody can see the whole thing yet

 

[OKW Lover]

It's not improper to wait until a project is complete to book revenue associated with it.

Ummm, yes it is improper. DVC records revenue when the sale of the points occur. They aren't allowed to say that the sale didn't occur until the next fiscal year.

 

[Phatscott25]

Ummm, yes it is improper. DVC records revenue when the sale of the points occur. They aren't allowed to say that the sale didn't occur until the next fiscal year.

As a CPA I'm going to try and settle this. Yes, you're correct the full-accrual basis US GAAP (which Disney must adhere to as a publicly traded corporation) rules would require the revenue to be recognized in the period it's earned (which in most cases is when the product is sold and cash received). However, the question becomes whether it would be considered revenue or a liability until the points are actually useable (i.e. when the resort the opens). To be honest, I don't know. That could be dictated by timeshare law.

Even if the resort doesn't have to open for them to be able to recognize revenue, I'm sure it wouldn't be considered an actual sale until the deed is recorded. This is because the buyer has a 10 day opt-out period and even when that's passed, said buyer hasn't really received consideration (the real estate interest) until the deed is actually recorded.

So in my opinion, in either case I'd think the entry would be like this when the sale is made:

DR Cash XXX
CR Unearned Revenue XXX

Then when either the deed is recorded (or when the resort opens) the entry would be:

DR Unearned Revenue XXX
CR Revenue XXX

So even if they don't have to wait for the resort to open, sales made in September could very well not actually hit the revenue line until October without violating US GAAP.

 

[maui22]

It was discussed a few pages ago. There's some pretty good evidence which suggests that DVD doesn't actually book the revenue until a new building has opened. Even if that isn't entirely correct, they would surely have to wait until paperwork is compete, waiting period expires and closing has occurred. Long story short, a sale occurring after 9/1 would be rather easy to push until at least 10/1 (if not 12/17) if that's what Disney wants to do.

I believe this was on another thread. Here is where you pointed out VDH sales didn’t appear until next quarter financials.

https://www.disboards.com/threads/w...point-charts-etc.3951372/page-2#post-65656670

 

[Genie+]

We spread our direct purchase into 4 equal payments over 90 days. The points were released to us as soon as we sent that down payment through. I wonder how common that is and how they record it. Do they wait until final payment since up to that point it really wasn’t ‘ours’ yet even though we had access to the system?

 

[SugarSweetLee]

We spread our direct purchase into 4 equal payments over 90 days. The points were released to us as soon as we sent that down payment through. I wonder how common that is and how they record it. Do they wait until final payment since up to that point it really wasn’t ‘ours’ yet even though we had access to the system?

I understand the sale isn't recorded until the final payment, when it closes...

 

[OKW Lover]

As a CPA I'm going to try and settle this. Yes, you're correct the full-accrual basis US GAAP (which Disney must adhere to as a publicly traded corporation) rules would require the revenue to be recognized in the period it's earned (which in most cases is when the product is sold and cash received). However, the question becomes whether it would be considered revenue or a liability until the points are actually useable (i.e. when the resort the opens). To be honest, I don't know. That could be dictated by timeshare law.

Even if the resort doesn't have to open for them to be able to recognize revenue, I'm sure it wouldn't be considered an actual sale until the deed is recorded. This is because the buyer has a 10 day opt-out period and even when that's passed, said buyer hasn't really received consideration (the real estate interest) until the deed is actually recorded.

So in my opinion, in either case I'd think the entry would be like this when the sale is made:

DR Cash XXX
CR Unearned Revenue XXX

Then when either the deed is recorded (or when the resort opens) the entry would be:

DR Unearned Revenue XXX
CR Revenue XXX

So even if they don't have to wait for the resort to open, sales made in September could very well not actually hit the revenue line until October without violating US GAAP.

Thanks for the explanation. I'm a recovering bean counter with a masters in accountancy and 39 years of working in the numbers end of the business. My memory can be a bit rusty but I thought that was what should happen.

 

[Mikey15]

Thanks for the explanation. I'm a recovering bean counter with a masters in accountancy and 39 years of working in the numbers end of the business. My memory can be a bit rusty but I thought that was what should happen.

US GAAP isn’t my specialty but for IFRS and Canadian GAAP we follow specific tests for revenue recognition, and they include performance obligations. You can’t record revenue on something you don’t actually have to sell; like a homebuilder who takes a deposit from a buyer. It’s unearned revenue, until it’s earned.

Exceptions for percentage of progress type recognition on long-term projects, with specific requirements to record that way, including significant accounting policies disclosed in notes to financial statements. In my mind this would be more how the general contractor building Island Tower for DVD would record revenue.

 

[ehh]

Does anyone know what nxtbook is?

Asking because when I google search for Wailulu Bar, Google shows some images and something with the wording...



When I click on the links, nxtbook doesn't allow me access.

The images remind me of DVD brochure images for resorts.

The wording that Google is showing has changed at least 2 times since I first saw this 30 minutes ago. I suspect someone may is editing it????

Including links and my description of what I can decipher. Only including the ones that show 1-2 days old.

I believe this is Disney's upcoming Polynesian Villas and Bungalows product brochure.
Here are the image links by page.

Page 1 front page of the brochure https://images.app.goo.gl/CHaPHuWBc11Tbrc5A
Page 2 The Spirit of the Islands. The heart of the magic. Shows the older image of the hammock on the grass and the lagoon side of the island tower. https://images.app.goo.gl/Jkx9McRNFvxowNF16
Another Page 2 is the GCH and it seems to be adjacent to a partial image of Island Tower lobby https://images.app.goo.gl/vgnxhHfqtCxuPemF7
Page 3 https://images.app.goo.gl/3xT9upqM46FwEhfy8
Another one that appears to be Page 3? https://images.app.goo.gl/CKjmDZ19izMsimYv8
Another page 3, but this one shows a metal railing along the water and the island tower in the background. https://images.app.goo.gl/FFMzpcWbJD71dczL6
Another page 3, but this is the Island Tower lobby https://images.app.goo.gl/zqq2L2y8uhkBkMAJ9

Page 5 showing Tron's coaster https://images.app.goo.gl/UrL5jT1aeGtqJr8R8

Page 8 is the duo https://images.app.goo.gl/r8FJkfKMoH9R1j356

Page 9 is the studio https://images.app.goo.gl/ZvjZ4k4iqrYJkkrV8

Page 10 is the 1BR https://images.app.goo.gl/cDkxpWHK2vppFN4R9

Page 11 Parents in bed with 3 children on the bed. Also shows what I believe is the 2BR floor plan. Plus there is an image with something along the wall...perhaps a wall waterfall in one of the pocket gardens? https://images.app.goo.gl/qzhg8DBuTccdwd8U8

Page 12 is the 2BR penthouse https://images.app.goo.gl/JkkUA5VFxtWMrZTs6
Another Page 12 is the existing longhouse studio. https://images.app.goo.gl/vgnxhHfqtCxuPemF7

Page 15 is the main pool and Moana's splash area. https://images.app.goo.gl/vKpGMU5y86WpZhHr9

Page 16 is the porte cochere https://images.app.goo.gl/pfF77JpxjAFZNPUQ8

Page 17 shows main Polynesian pool and the Wailulu Bar & Grill https://images.app.goo.gl/9BnLkunTnCUyYUiJ7
Another Page 17 (perhaps this is the older one) because it's the bungalows. https://images.app.goo.gl/aCzMqkGEdxZjbC6E8
Another Page 17 is the monorail https://images.app.goo.gl/myw1AcyGvktduv8X9

Page 18 https://images.app.goo.gl/SLVtnYXMBsFEdXG26

Page 20 is the end https://images.app.goo.gl/UaA5V96mcBjTNqU47

This is an old one, but it's from nxtbook that allows you to go directly to the DVC Points Chart Book 2024. Seems highly likely Disney is the one editing this. https://images.app.goo.gl/g8b95KpvPGpPBcig9

Fantastic digging! Wish I could give this more than one like. Very curious that Google's crawler has some sort of access to these.

That said, this draft of the brochure is kinda ho-hum

I guess I'm interested in seeing how much they advertise the longhouses and bungalows alongside the new Island Tower rooms.

 

[Jlo85]

However, the question becomes whether it would be considered revenue or a liability until the points are actually useable (i.e. when the resort the opens). To be honest, I don't know.

Disney’s timeshare units are reported as “Inventory” in their financial reporting. It is an asset valued as the lower of cost or net realizable value.

There is therefore limited risk for Disney to carry DVC inventory.

 

[maui22]

Fantastic digging! Wish I could give this more than one like. Very curious that Google's crawler has some sort of access to these.

Some times it’s better to use ancient methods (Google search) as opposed to ChatGPT and AI (which are based on months old date).

 

[mkatsy]

Does anyone know what nxtbook is?

Asking because when I google search for Wailulu Bar, Google shows some images and something with the wording...



When I click on the links, nxtbook doesn't allow me access.

The images remind me of DVD brochure images for resorts.

The wording that Google is showing has changed at least 2 times since I first saw this 30 minutes ago. I suspect someone may is editing it????

Including links and my description of what I can decipher. Only including the ones that show 1-2 days old.

I believe this is Disney's upcoming Polynesian Villas and Bungalows product brochure.
Here are the image links by page.

Page 1 front page of the brochure https://images.app.goo.gl/CHaPHuWBc11Tbrc5A
Page 2 The Spirit of the Islands. The heart of the magic. Shows the older image of the hammock on the grass and the lagoon side of the island tower. https://images.app.goo.gl/Jkx9McRNFvxowNF16
Another Page 2 is the GCH and it seems to be adjacent to a partial image of Island Tower lobby https://images.app.goo.gl/vgnxhHfqtCxuPemF7
Page 3 https://images.app.goo.gl/3xT9upqM46FwEhfy8
Another one that appears to be Page 3? https://images.app.goo.gl/CKjmDZ19izMsimYv8
Another page 3, but this one shows a metal railing along the water and the island tower in the background. https://images.app.goo.gl/FFMzpcWbJD71dczL6
Another page 3, but this is the Island Tower lobby https://images.app.goo.gl/zqq2L2y8uhkBkMAJ9

Page 5 showing Tron's coaster https://images.app.goo.gl/UrL5jT1aeGtqJr8R8

Page 8 is the duo https://images.app.goo.gl/r8FJkfKMoH9R1j356

Page 9 is the studio https://images.app.goo.gl/ZvjZ4k4iqrYJkkrV8

Page 10 is the 1BR https://images.app.goo.gl/cDkxpWHK2vppFN4R9

Page 11 Parents in bed with 3 children on the bed. Also shows what I believe is the 2BR floor plan. Plus there is an image with something along the wall...perhaps a wall waterfall in one of the pocket gardens? https://images.app.goo.gl/qzhg8DBuTccdwd8U8

Page 12 is the 2BR penthouse https://images.app.goo.gl/JkkUA5VFxtWMrZTs6
Another Page 12 is the existing longhouse studio. https://images.app.goo.gl/vgnxhHfqtCxuPemF7

Page 15 is the main pool and Moana's splash area. https://images.app.goo.gl/vKpGMU5y86WpZhHr9

Page 16 is the porte cochere https://images.app.goo.gl/pfF77JpxjAFZNPUQ8

Page 17 shows main Polynesian pool and the Wailulu Bar & Grill https://images.app.goo.gl/9BnLkunTnCUyYUiJ7
Another Page 17 (perhaps this is the older one) because it's the bungalows. https://images.app.goo.gl/aCzMqkGEdxZjbC6E8
Another Page 17 is the monorail https://images.app.goo.gl/myw1AcyGvktduv8X9

Page 18 https://images.app.goo.gl/SLVtnYXMBsFEdXG26

Page 20 is the end https://images.app.goo.gl/UaA5V96mcBjTNqU47

This is an old one, but it's from nxtbook that allows you to go directly to the DVC Points Chart Book 2024. Seems highly likely Disney is the one editing this. https://images.app.goo.gl/g8b95KpvPGpPBcig9

It’s a digital publishing platform… and I would suspect that the user is unaware that their work is visible Attached is their announcement of the collaboration with Disney for the DVC “Disney files”

 

[ocdb8r1]

Slightly random question - is there any obligation on DVC to provide any visibility on how the addition of the tower might impact the per point annual dues? I never watched very closely what happened with VGF, but the addition of this tower much more drastically changes the room type mix and even the "construction mix" compared to what's in the existing association. I'm curious how it will actually impact annual dues at the resort, but also curious if DVC has any obligation to do (and share) some sort of analysis on this.

 

[pkrieger2287]

Wailulu Bar & Grill Coming Soon to the Polynesian Island Tower!​

Get ready to experience the new Wailulu Bar & Grill at the Polynesian Island Tower! With breathtaking views of Cinderella Castle and island-inspired vibes, this spot is perfect for any meal of the day.
We can't wait to relax by the lava rock-inspired bar overlooking Seven Seas Lagoon. Head to DVCFan.com for more details!

https://dvcfan.com/dvc-dining/wailulu-bar-grill-coming-soon-to-the-polynesian-island-tower/

#disneyvacationclub #disneyworld #magickingdom #disneyparks #disney #dvc

 

[MarkNC2Disney]

“Whether you’re in the mood for a quick, on-the-go breakfast or a leisurely lunch or dinner, you’ll find something to satisfy your cravings.“

 

[MonkeyKnifeFight]

“Whether you’re in the mood for a quick, on-the-go breakfast or a leisurely lunch or dinner, you’ll find something to satisfy your cravings.“

I wonder if this will be similar to Sanaa at kidani. QS for breakfast and table service the rest of the day.

 

[intamin]

“Whether you’re in the mood for a quick, on-the-go breakfast or a leisurely lunch or dinner, you’ll find something to satisfy your cravings.“

Hrmmm sounds more like a casual table service with a to go option, darn. Was hoping for fine dining on this one.

 

[lukemorenus]

Wailulu Bar & Grill Coming Soon to the Polynesian Island Tower!​

Get ready to experience the new Wailulu Bar & Grill at the Polynesian Island Tower! With breathtaking views of Cinderella Castle and island-inspired vibes, this spot is perfect for any meal of the day.
We can't wait to relax by the lava rock-inspired bar overlooking Seven Seas Lagoon. Head to DVCFan.com for more details!

https://dvcfan.com/dvc-dining/wailulu-bar-grill-coming-soon-to-the-polynesian-island-tower/

#disneyvacationclub #disneyworld #magickingdom #disneyparks #disney #dvc

Nice!