# ASC 330-905-25: Inventory — Agriculture — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/330/905/#25-recognition) 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): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:8733a5b9282f737a59d8b513c8d389a6c03969845ca3df79aa1da0b9b132ef05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/330/905/#25-recognition) SEC content: no #### Growing Crops ##### [330-905-25-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:158c0eaa3cde029977c332c204b85f1844b68ed15e9a3b1fb031ed0dede42f55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All direct and indirect costs of growing [crops](https://asc.understandingaccounting.org/glossary/c/#crops "Grains, vegetables, fruits, berries, nuts, and fibers grown by agricultural producers.") shall be accumulated until the time of harvest. Some crop costs, such as soil preparation, are incurred before planting and shall be deferred and allocated to the [growing crop](https://asc.understandingaccounting.org/glossary/g/#growing-crop "A field, row, tree, bush, or vine crop before harvest."). ##### [330-905-25-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:767b3ca0adb037990e93920f31bfb7b20daceab469322ac1686bdc38a8f447ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other cultural practices, such as clearing the residue of harvested crops, cannot be performed or completed until after harvest, which may be in a succeeding year; those costs shall be estimated, accrued, and allocated to the [harvested crop](https://asc.understandingaccounting.org/glossary/h/#harvested-crop "An agricultural product, gathered but unsold."). Some crops require more than one year to mature, and the costs shall be deferred until harvest. #### Production Animals ##### [330-905-25-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:b2a0166725a3ed4f0b43b5081c35162fd1b6ecf1d8c4fd2b87dedbce80dc4d95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Animals with short productive lives, such as poultry, may be classified as inventory. Due to the short productive life of poultry, the cost of flocks may be classified as inventory. The accounting principles for poultry operations are much the same as those for other [production animals](https://asc.understandingaccounting.org/glossary/p/#production-animals "Production animals provide a service or primary product other than their progeny. Examples are dairy cows (milk), poultry (meat and eggs), and sheep (meat and wool).") (see paragraph [905-360-25-4](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-4)), although the operating cycles are much shorter. ##### [330-905-25-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:6d3b0f4e62a8782a37618125430458282414ac329be685f9f7293a6a4b11774d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on developing animals and animals held for sale, breeding animals, and production animals, see Subtopic 905-360. ### Cooperatives ##### [330-905-25-5](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:c597175d357a9dd06069e394045d41f5bafd59d6e3c4a3ee2720525c209e2649 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the boards of directors of agricultural marketing cooperatives operating on a pooling basis with no obligation to pay patrons fixed prices (pooling cooperatives) assign amounts that approximate estimated market to unprocessed products received from patrons, the assigned amounts are cost and shall be charged to cost of goods sold. ##### [330-905-25-6](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:b36699f7afd32b9719e5752ae709e7e9ad7a6724bc490449537de000b64ddaa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pooling cooperatives may use [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.") for determining pool proceeds, transferring inventory amounts to subsequent [pools](https://asc.understandingaccounting.org/glossary/p/#pools "Pools are accounting control centers used for determining earnings and patronage refunds due to particular patrons, including the following: An open pool is an accounting control center that is not closed at the end of each accounting period. Open pools are sometimes used by marketing cooperatives for crops that may not be sold for two or more years after their receipt from patrons. A single pool cooperative determines net proceeds or patronage refunds on the basis of overall operating results for all commodities marketed during an accounting period. A multiple pool cooperative determines net proceeds or patronage refunds on the basis of separate commodities, departments, or accounting periods."), or for other purposes (see column B in the table in Example 1 (paragraph [905-330-55-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-1))). ##### [330-905-25-7](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:24479d098eb17cba4d80d2a8d59cb3ba367695875d267f184a0a54a69baf640b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the boards of directors of pooling cooperatives do not assign amounts that approximate market to unprocessed products received from patrons, the cooperatives shall account for inventories at net realizable value (see column C in the table in Example 1 (paragraph [905-330-55-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-1))). Because amounts that approximate estimated market are not assigned to products received from patrons, cost of goods sold will not include a charge for unprocessed products under this method. ##### [330-905-25-8](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:32.233Z to 2026-09-09T23:51:32.233Z Record version: sha256:fa57e0696b3dd832a7f8d8585f0f6be2d795191d8f145bafb344d4ed2e74f568 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pooling cooperatives shall not use the [cash advance method](https://asc.understandingaccounting.org/glossary/c/#cash-advance-method "The cash advance method is a prohibited method of accounting for inventories of a marketing cooperative operating on a pooling basis. Under this method, inventories are accounted for at the amount of cash advances made to patrons. (This is sometimes referred to as the cost advance method.)") to account for inventories.