# ASC 310-905: Receivables — Agriculture Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/905/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:28:04.502Z Record version: sha256:f02aa9c59434980d6d5a524e96ab4d168b9825cb9b9770abc970c8aebce3e00c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905: Receivables — Agriculture ### Machine-generated study aids ```json { "summary": "ASC 310-905 provides industry-specific guidance on receivables (loans, notes, and others) for agricultural entities, with dedicated Cooperatives—Patrons Subsections for patrons of agricultural cooperatives. Its core rules govern when a patron recognizes a patronage refund receivable and how a patron's unbilled receivable from products delivered to a cooperative is subsequently measured. Scope follows ASC 905-10-15.", "key_points": [ "Patrons recognize patronage refunds either when the related patronage occurs—if it is probable that a refund will be declared, confirming future events are expected, the amount is reasonably estimable, and the accrual can be made consistently year to year—or on notification by the distributing cooperative (310-905-25-3).", "Any accrual of a patronage refund must be based on the latest available reliable information (310-905-25-3).", "The accrual for patronage refunds is adjusted upon notification of an allocation by the cooperative (310-905-35-3).", "If indications exist that expected net proceeds will be less than cost, the patron's unbilled receivable is recorded at estimated net realizable value (310-905-35-1).", "Variances from the amount recorded as an unbilled receivable are recognized when reasonably determinable (310-905-35-1).", "Advances from a cooperative are financing devices treated as reductions of the patron's unbilled receivable and are not used as amounts for recording sales (310-905-35-2).", "Scope mirrors the Overall Agriculture Subtopic, with separate scope for the Cooperatives—Patrons Subsections (310-905-15-1; 310-905-15-2); certain recognition paragraphs were superseded by ASU 2014-09." ], "categories": [ "Recognition", "Subsequent measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are (1) treating cooperative advances as sales revenue rather than reductions of the unbilled receivable, and (2) forgetting that a patron may accrue a patronage refund before notification only if all four conditions in 310-905-25-3(a) are met. Note that ASU 2014-09 superseded the old revenue-recognition paragraphs, so revenue questions go to ASC 606.", "related_topics": [ "905-10", "905-605", "606", "310-10", "905-330" ], "key_concepts": [ "patronage refund", "agricultural cooperative", "patron", "unbilled receivable", "net realizable value", "advances as financing device", "probable and reasonably estimable accrual" ] } ``` Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:27:49.582Z Record version: sha256:97b79b09bd5292c341625ee07220ad0f2ef007868b9874278f721465e85e1a7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/905/#00-status) SEC content: no ##### [310-905-00-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:27:49.582Z Record version: sha256:c5e5cd4161db348243c0c22506ae5aacfe64013a76f9d541ac89ec00546ceeb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
CooperativesSupersededAccounting Standards Update No. 2014-0603/14/2014
Member of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
Net Realizable Value (2nd def.)AmendedAccounting Standards Update No. 2014-0603/14/2014
Nonmember of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
PatronsAmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-05-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
905-310-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
905-310-25-3AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:e03893fcea955c1cb094a2b007b4cf966e5766fb721795c7e81538108b32ac21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/905/#05-overview-and-background) SEC content: no ##### [310-905-05-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:f515aa3b00da14692b5b5b5c420f2958613e07a46dffbc4a2b352b25f5d79eb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for receivables, including loans, notes, and others, for entities in the agricultural industry. The guidance for accounting for [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.") of [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—Patrons Subsections. ### Cooperatives—Patrons ##### [310-905-05-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:bf3041d9efde532f3d397c6dc1ef6c388069bdbb635c433ac3aa9025d21dcf0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections address accounting for receivables, including loans, notes, and others, for [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.") of [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."). Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:ec38f67a6caa5d5e720810a1da0f797844c2d972e8a9da07ab4cb6323c8ab3a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/905/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-905-15-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:d69d58abc46db4e20e757b9d8baf1b3e5e438d8da75047445d1cde9f1db88b2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives—Patrons ##### [310-905-15-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:7fb19863a8af6f6940c7502e92790852206c1860a31dea7533edcb83ec14fabc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives—Patrons Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:121675179a4ad3e2720e8c1e584d2c005e1c9ab961fd9238497a71f87c4a6a53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:c802f62c3a807f38709a8c3354dda6e9486ecfdd14809eb6db2a5e3439073fca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:b8f8596aec8a96a0e73b88a3a732bd39150e87568d4b7b9164e12e0b2cb2c5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:ae47a8da02c221b307cd6ff0a2583ec3cf0e56925752d87711a81d3329d38e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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. Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:3b6a138e95085d965d64218a253d87e1078a465a07560a3e066d49a26e3cd955 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/905/#35-subsequent-measurement) SEC content: no ### Cooperatives—Patrons #### Deliveries to Marketing Cooperatives ##### [310-905-35-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:f138d20cb82b8b749555f62d2ca1cdbb461dd4e5f0f51a49ce3da588dd87000f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there are indications that the expected net proceeds will be less than cost, the [patron's](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.") unbilled receivable shall be recorded at estimated [net realizable value](https://asc.understandingaccounting.org/glossary/n/#net-realizable-value "Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation."). Variances from the amount recorded as an unbilled receivable shall be recognized when reasonably determinable. #### Advances ##### [310-905-35-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:7deed5221d92e4d882bdffbe4f59c0d04036aa62849387b70f47822067a46351 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Advances](https://asc.understandingaccounting.org/glossary/a/#advances "Generally used in marketing and pooling cooperatives to denote amounts paid to patrons before final settlement; for example, amounts paid to patrons on delivery of crops.") are financing devices and shall be treated as reductions in the patron's unbilled receivable and shall not be used as amounts for recording sales. #### Patronage Refunds ##### [310-905-35-3](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:4df2a2e2efd0b10255ee821c3e3e986d621a5bcfd888dad611f45cf695c6afa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual for [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 shall be adjusted on notification of an allocation by the cooperative.