{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/330/905/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"330","topic_title":"Inventory","subtopic":"330-905","subtopic_title":"Agriculture","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"330-905-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1462B56A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Exceptional cases exist in which it is not practicable to determine an appropriate cost basis for products. </span></span><span class=\"sfragment\" id=\"sfr_1462B662-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> A market basis is acceptable if the products meet all of the following criteria: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_1462B74C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They have immediate marketability at quoted market prices that cannot be influenced by the producer. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_1462B82E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They have characteristics of unit interchangeability. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_1462B90A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They have relatively insignificant costs of disposal. </span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_1462B9F1-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accounting basis of those kinds of inventories shall be their realizable value, calculated on the basis of quoted market prices less estimated direct costs of disposal. </span></span><span class=\"sfragment\" id=\"sfr_1462BAC4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> An example is freshly dressed meats produced in meat packing operations. </span></span></div></div>","snippet":"Exceptional cases exist in which it is not practicable to determine an appropriate cost basis for products. A market basis is acceptable if the products meet all of the following criteria:\n(a) They have immediate marketa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3eb6a555c28725a838b479d5868fac35918c67e5a33fe11958c687ff0a07147","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8801e60b4fabd1ec898f5d082c34fda79e50f9edbc8c7662b50fdd49dd268243","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}},{"block":null,"heading":"Harvested Crops","paragraphs":[{"citation":"330-905-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1462BC3B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Generally, farming procedures undertaken after the current year harvest benefit the crop of the succeeding year. There may be instances, however, in which additional costs such as costs of special tillage, chopping, or burning are required after harvest of a particular crop to overcome a physical or noxious condition. Those costs shall be estimated and accrued as costs of the <a href=\"/glossary/h/#harvested-crop\" class=\"term\" title=\"An agricultural product, gathered but unsold.\"><span>harvested crop</span></a>. </span></span></div></div>","snippet":"Generally, farming procedures undertaken after the current year harvest benefit the crop of the succeeding year. There may be instances, however, in which additional costs such as costs of special tillage, chopping, or b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0141feeed622fb1904edce9c9ccea3b143fb0a04c89350da79c5aa273f3cfb5","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a04860bd1f6f70a729bd4d23c8ddb70d63c09fa5b01271883af6b125bfb6e84","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}},{"block":"Cooperatives","heading":null,"paragraphs":[{"citation":"330-905-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:645e82e4f800f2d41a174dc3d01b6e0fc71e4f5484de2dcd7a51d28cfffda32e","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}},{"citation":"330-905-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_14777267-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/a/#agricultural-cooperative\" class=\"term\" title=\"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.\"><span>Agricultural cooperatives</span></a> operating on a pooling basis may receive products from their patrons without paying a fixed price to the patrons. </span></span><span class=\"sfragment\" id=\"sfr_147773D9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> A cooperative may assign amounts to products on the basis of current prices paid by other buyers or on amounts established by the cooperative's board of directors, or it may assign no amount. </span></span></div></div>","snippet":"Agricultural cooperatives operating on a pooling basis may receive products from their patrons without paying a fixed price to the patrons. A cooperative may assign amounts to products on the basis of current prices paid…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a38c438120dcf18f76617df62e1b5dabc702f66d1f5892a109cd240a10fa6963","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:434103df394026bcc054006916d997e5a53e97001e2734140bab5dd58177cbba","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b70e7887f705e7533f94ede92f554839b0159deeba389a9f5cd9dec69f8d4d2","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b70e7887f705e7533f94ede92f554839b0159deeba389a9f5cd9dec69f8d4d2","downloaded_from":"2026-09-09T23:51:35.402Z","last_downloaded_at":"2026-09-09T23:51:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478007","source_sha256":"80b8f5c93cfed9361a46dffbd56fd7c880d58fbb1c75db0837cf5ada9bbe9aa1"}}