# ASC 205-905-05: Presentation of Financial Statements — Agriculture — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 205-905-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/205/905/#05-overview-and-background)

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##### [205-905-05-1](https://asc.understandingaccounting.org/asc/205/905/#205-905-05-1)

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This Subtopic provides guidance for the presentation of financial statements for entities in the agricultural industry. The guidance for [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") is presented in the Cooperatives Subsections.

### Cooperatives

##### [205-905-05-2](https://asc.understandingaccounting.org/asc/205/905/#205-905-05-2)

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The Cooperatives Subsections provide guidance for the presentation of financial statements for cooperatives in the agricultural industry.