# ASC 310-905-25: Receivables — Agriculture — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/310/905/#25-recognition)

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## ASC 310-905-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/310/905/#25-recognition)

SEC content: no

### Cooperatives—Patrons

##### [310-905-25-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-1)

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[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

##### [310-905-25-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-2)

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[Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).

#### Patronage Refunds

##### [310-905-25-3](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-3)

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[Patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") shall recognize [patronage](https://asc.understandingaccounting.org/glossary/p/#patronage "The amount of business done with a cooperative by one of its patrons. Patronage is measured by either the quantity or value of commodities received from patrons by a marketing cooperative and the quantity or value of the goods and services sold to patrons by a supply cooperative.") refunds on either of the following occasions:

1.  a
    
    When the related patronage occurs if all of the following are probable:
    
    1.  1
        
        A patronage refund applicable to the period will be declared.
        
    2.  2
        
        One or more future events confirming the receipt of a patronage refund are expected to occur.
        
    3.  3
        
        The amount of the refund can be reasonably estimated.
        
    4.  4
        
        The accrual can be consistently made from year to year.
        
2.  b
    
    On notification by the distributing [agricultural cooperative](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.").
    

The accrual shall be based on the latest available reliable information.