# ASC 330-905: Inventory — Agriculture Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/330/905/) 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): 2026-09-09T23:51:23.210Z to 2026-09-09T23:51:52.923Z Record version: sha256:7b4bb2437434c21948c32428a5426a1b036ded7dcaa987affbf9a13a9980a4f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905: Inventory — Agriculture ### Machine-generated study aids ```json { "summary": "ASC 330-905 applies Inventory guidance to the agricultural industry, covering producers (growing crops, developing animals, harvested crops, livestock held for sale, secondary products), pooling cooperatives, and cooperative patrons. Direct and indirect costs of growing crops are accumulated until harvest, with pre-planting costs deferred and post-harvest cultural costs estimated and accrued to the harvested crop. Harvested crops and animals held for sale may be carried at net realizable value if they have a reliable, readily determinable market price, insignificant and predictable disposal costs, and immediate availability for delivery; otherwise Subtopic 330-10 measurement applies.", "key_points": [ "All direct and indirect costs of growing crops shall be accumulated until harvest; pre-planting costs such as soil preparation are deferred and allocated to the growing crop, and crops requiring more than one year to mature have costs deferred until harvest (330-905-25-1 through 25-2).", "Post-harvest cultural practices (e.g., clearing residue, special tillage, chopping, or burning to overcome a physical or noxious condition) shall be estimated and accrued as costs of the harvested crop (330-905-25-2; 330-905-30-2).", "Animals held for sale and harvested crops are valued under Subtopic 330-10 or at net realizable value if the product has a reliable, readily determinable, and realizable market price, relatively insignificant and predictable disposal costs, and is available for immediate delivery (330-905-35-3 through 35-4).", "A market basis (quoted market prices less estimated direct costs of disposal) is acceptable where a cost basis is not practicable and the products have immediate marketability at prices the producer cannot influence, unit interchangeability, and insignificant disposal costs—e.g., freshly dressed meats (330-905-30-1).", "Animals with short productive lives, such as poultry flocks, may be classified as inventory; other developing, breeding, and production animals are addressed in Subtopic 905-360 (330-905-25-3 through 25-4).", "For pooling cooperatives, board-assigned amounts approximating estimated market for unprocessed patron products are treated as cost and charged to cost of goods sold; if no such amounts are assigned, inventories are accounted for at net realizable value and cost of goods sold includes no charge for unprocessed products (330-905-25-5, 25-7, 35-5).", "Pooling cooperatives shall not use the cash advance method to account for inventories, and the method used and dollar amounts assigned to members' products shall be disclosed (330-905-25-8; 330-905-50-1)." ], "categories": [ "Inventory and PP&E", "Subsequent measurement", "Industry-specific", "Disclosure" ], "audience_level": "intermediate", "student_note": "Agriculture is one of the few industries where GAAP permits carrying inventory above cost at net realizable value, but only when the three conditions in 330-905-35-3(b) are all met—students often assume NRV is freely elective. Also watch the cooperative rules: assigned amounts function as cost, and the cash advance method is prohibited.", "related_topics": [ "330-10", "905-360", "905-10", "905-330", "606" ], "key_concepts": [ "growing crops", "harvested crops", "animals held for sale", "net realizable value", "pooling cooperative", "assigned amounts to patron products", "deferred pre-planting and accrued post-harvest costs", "market basis inventory" ] } ``` Source downloaded (UTC): 2026-09-09T23:51:23.210Z to 2026-09-09T23:51:23.210Z Record version: sha256:b3fcdc0cc770fe8bda2b6a0ece52c8efb1d4b8b9b02cb7880b67d99a25defa03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/330/905/#00-status) SEC content: no ##### [330-905-00-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:23.210Z to 2026-09-09T23:51:23.210Z Record version: sha256:c5c3d623e543ecd52d2d161f0f56a692be5467d026817c01e324cb30bf9e1832 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
905-330-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-05-5AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-15-3AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-30-3SupersededAccounting Standards Update No. 2014-0905/28/2014
905-330-30-3AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-30-4AmendedAccounting Standards Update No. 2014-0905/28/2014
905-330-35-1 through 35-3
AmendedAccounting Standards Update No. 2015-1107/22/2015
905-330-35-5AmendedAccounting Standards Update No. 2015-1107/22/2015
905-330-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
905-330-40-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-330-55-2 through 55-4
AmendedAccounting Standards Update No. 2015-1107/22/2015
Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:38b23c933df0c16ccfc978767185e8876d935a648b2e89bc5977c1b8cfcfb169 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/330/905/#05-overview-and-background) SEC content: no ##### [330-905-05-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:7bf632bc543a0389a5f105098ee2755768a5a0ccff666d2b0c2734051c5486ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses inventory accounting for entities in the agricultural industry. The guidance for accounting for different entities in the agricultural industry is presented in the following three Subsections: 1. a General 2. b Cooperatives 3. c Cooperatives—Patrons. ##### [330-905-05-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:69a6baa9fa23d7bdb997b724776cd9e639b59f2cb564b28b5e554d97d4b4fc47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance for all those entities operating in the agricultural industry as set forth in the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#05-overview-and-background) of Section 905-10-05. Inventories of [agricultural producers](https://asc.understandingaccounting.org/glossary/a/#agricultural-producers "Farmers and ranchers including, for example, those who raise crops from seeds or seedlings, breed livestock (whether registered or commercial), and feed livestock in preparation for slaughter.") include growing [crops](https://asc.understandingaccounting.org/glossary/c/#crops "Grains, vegetables, fruits, berries, nuts, and fibers grown by agricultural producers."), developing animals to be held for sale, harvested crops, [livestock](https://asc.understandingaccounting.org/glossary/l/#livestock "Registered and commercial cattle, sheep, hogs, horses, poultry, and small animals bred and raised by agricultural producers.") held for sale, and secondary products, such as calves from dairy herds and wool from sheep. ##### [330-905-05-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:234b700a34556b80aec3b7c7310bf252f969f4db225759a1609f09296c5448dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Field and row crops](https://asc.understandingaccounting.org/glossary/f/#field-and-row-crops "Field and row crops are usually planted from seeds or are transplanted from beds and develop to the point of harvest within several months.") with cycles of less than one year that constitute part of inventory are generally classed as annuals. These crops include wheat, barley, milo, corn, soybeans, sugar beets, tobacco, cotton, crops raised for seed, tomatoes, lettuce, beans, cabbages, and melons. ### Cooperatives ##### [330-905-05-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:ce5f9cbd77cdd14a982cb7bb75f9a2a61f349b404f92eee36f8f03a4ce769ebc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections provide guidance about the different accounting methods used by [pooling cooperatives](https://asc.understandingaccounting.org/glossary/p/#pooling-cooperative "A marketing cooperative that receives its members' agricultural products without obligation to pay a fixed price and commingles those products into single or multiple pools for processing and marketing purposes. Pool periods may vary from a week to a year or longer, depending on the product involved. Generally profits or losses are allocated to patrons upon closing of the pool.") for [patron](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.") product deliveries. These methods have been developed to satisfy provisions of their bylaws and contractual arrangements with patrons and to provide equitable methods of settlement from pool period to pool period, as well as among the various classes of patrons. For pooling cooperatives, accounting methods have been developed to allow the use of the single-pool or multiple-pool methods of accounting. ### Cooperatives—Patrons ##### [330-905-05-5](https://asc.understandingaccounting.org/asc/330/905/#330-905-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:24.987Z to 2026-09-09T23:51:24.987Z Record version: sha256:932003194bd9bdcfdc3b42df5ec5e53f39077abdae742762bed3cbd48806401e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections address inventory accounting by patrons 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): 2026-09-09T23:51:28.028Z to 2026-09-09T23:51:28.028Z Record version: sha256:04cf9584b2b880462f3ea5f0eb1944453cf5cb1f62b6de2359b18f412ea3db34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/330/905/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [330-905-15-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:28.028Z to 2026-09-09T23:51:28.028Z Record version: sha256:d8da23d6eff2530449925cdf0c721b30ff3272ea1b98708aa9656f0ed12c5a11 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 ##### [330-905-15-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:28.028Z to 2026-09-09T23:51:28.028Z Record version: sha256:735133d200231e705c7a1fa0abbd3c899cf18211da091880f42b906e5306924a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives—Patrons ##### [330-905-15-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:28.028Z to 2026-09-09T23:51:28.028Z Record version: sha256:ce90a3b07f9d53da2e41b03b7a9449ff1ed5285c403a6923a6ac63739df890f6 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): 2026-09-09T23:51:32.233Z 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. Source downloaded (UTC): 2026-09-09T23:51:35.402Z to 2026-09-09T23:51:35.402Z Record version: sha256:3b70e7887f705e7533f94ede92f554839b0159deeba389a9f5cd9dec69f8d4d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/330/905/#30-initial-measurement) SEC content: no ##### [330-905-30-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:35.402Z to 2026-09-09T23:51:35.402Z Record version: sha256:b3eb6a555c28725a838b479d5868fac35918c67e5a33fe11958c687ff0a07147 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: 1. a They have immediate marketability at quoted market prices that cannot be influenced by the producer. 2. b They have characteristics of unit interchangeability. 3. c They have relatively insignificant costs of disposal. 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. An example is freshly dressed meats produced in meat packing operations. #### Harvested Crops ##### [330-905-30-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:35.402Z to 2026-09-09T23:51:35.402Z Record version: sha256:e0141feeed622fb1904edce9c9ccea3b143fb0a04c89350da79c5aa273f3cfb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [harvested crop](https://asc.understandingaccounting.org/glossary/h/#harvested-crop "An agricultural product, gathered but unsold."). ### Cooperatives ##### [330-905-30-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:35.402Z to 2026-09-09T23:51:35.402Z Record version: sha256:645e82e4f800f2d41a174dc3d01b6e0fc71e4f5484de2dcd7a51d28cfffda32e 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/). ##### [330-905-30-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:35.402Z to 2026-09-09T23:51:35.402Z Record version: sha256:a38c438120dcf18f76617df62e1b5dabc702f66d1f5892a109cd240a10fa6963 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") 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 by other buyers or on amounts established by the cooperative's board of directors, or it may assign no amount. Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:1c6418cbe5b8a338147a7776f8d2b1c25706658781c879bbe740edbe29c4924c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/330/905/#35-subsequent-measurement) SEC content: no #### Growing Crops ##### [330-905-35-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:c62a21fa36adee4eea824e84695379f8bfd16c42de8050c31c53d48419be804c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Growing crops shall be measured using the guidance in Subtopic 330-10. #### Developing Animals ##### [330-905-35-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:682f834a8ac5c1910fcabecd59130c887e6bf22bb1ca421a4d3d924a8c5cb6bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Developing animals to be held for sale shall be measured using the guidance in Subtopic 330-10. #### Animals Available and Held for Sale ##### [330-905-35-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:519aadae8636cfdcd2a8ef53eea025cdd37b27968f0f23d4c71910e6ae5e7c73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Animals held for sale shall be valued at either of the following: 1. a The amount determined using the measurement guidance in Subtopic 330-10 2. b [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."), if all the following conditions exist: 1. 1 The product has a reliable, readily determinable, and realizable market price. 2. 2 The product has relatively insignificant and predictable costs of disposal. 3. 3 The product is available for immediate delivery. #### Harvested Crops ##### [330-905-35-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:2baa4ba68ca820b41223931420f0faf13a5466bfe516cf4eac5a5fa71696649f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Inventories of harvested crops shall be valued using the same criteria as animals held for sale in the preceding paragraph. ### Cooperatives ##### [330-905-35-5](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:39.164Z to 2026-09-09T23:51:39.164Z Record version: sha256:cc1b6fe39a76d17d053d7e2b9e4a0afec4ad35b78c49c219be7e0cd27f84fd2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The inventories for a [pooling cooperative](https://asc.understandingaccounting.org/glossary/p/#pooling-cooperative "A marketing cooperative that receives its members' agricultural products without obligation to pay a fixed price and commingles those products into single or multiple pools for processing and marketing purposes. Pool periods may vary from a week to a year or longer, depending on the product involved. Generally profits or losses are allocated to patrons upon closing of the pool.") shall be accounted for at either of the following: 1. a The amount determined using the measurement guidance in Subtopic 330-10 2. b [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."). When [assigned amounts](https://asc.understandingaccounting.org/glossary/a/#assigned-amounts "Amounts used to record products delivered by patrons of a marketing cooperative operating on a pooling basis, and the related liability to patrons if the ultimate amounts to be paid to patrons are determined when the pool is closed. These amounts may be established on the basis of current prices paid by other buyers (sometimes referred to as field prices), or they may be established by the cooperative's board of directors. The assigned amounts are sometimes referred to as established values.") are used, they should approximate estimated net realizable value of unprocessed products delivered by patrons. See Example 1 (paragraph [905-330-55-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-1)) for an illustration. Source downloaded (UTC): 2026-09-09T23:51:42.990Z to 2026-09-09T23:51:42.990Z Record version: sha256:1f7ed93e8c7ce510cfe7e2fa13610ba95a78d47f36b193ab07bbc3d1fc35c3d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/330/905/#40-derecognition) SEC content: no ### Cooperatives—Patrons ##### [330-905-40-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:42.990Z to 2026-09-09T23:51:42.990Z Record version: sha256:0268ac81bf684b33f535c85a7d65e0b5f99807c8b3884ae2f79ab1db825be09d 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/). Source downloaded (UTC): 2026-09-09T23:51:45.954Z to 2026-09-09T23:51:45.954Z Record version: sha256:19267d9e6ccd79aadbcae0b71c489f00720e8142a6f41612acd70d3fb1877893 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/330/905/#50-disclosure) SEC content: no ### Cooperatives ##### [330-905-50-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:45.954Z to 2026-09-09T23:51:45.954Z Record version: sha256:c564fbb8b5dcc409cb91cfeb0bce4e8c998d5e4f892ac5ea3e70852eb7a44c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The method used and the dollar amounts assigned to members' products shall be disclosed. Source downloaded (UTC): 2026-09-09T23:51:49.173Z to 2026-09-09T23:51:49.173Z Record version: sha256:5c897eda7689cb89c1e5882d40b499f0b4356e864c3902bfdd7007c00d80ad29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-905-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/330/905/#55-implementation-guidance-and-illustrations) SEC content: no ### Cooperatives #### Illustrations ##### [330-905-55-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:49.173Z to 2026-09-09T23:51:49.173Z Record version: sha256:3cf4cb6da63f057d0add5865c8bc72d826874eec13caae88125cfe21af3d2087 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [905-330-25-6 through 25-7](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-6) and [905-330-35-5](https://asc.understandingaccounting.org/asc/330/905/#330-905-35-5). ##### [330-905-55-2](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:49.173Z to 2026-09-09T23:51:49.173Z Record version: sha256:8fba49c4e36aa16b22481a6bbe372a89b324d6d390eb5a401abd3039b3245479 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, inventory is measured using first-in, first-out (FIFO) and the following assumptions apply: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D642F29C-99D4-4315-B7CE-16008A7CD7AD-low.gif) Sales " $129,630 " Beginning inventory Net realizable value " 31,128 " Lower of cost and net realizable value " 28,380 " Assigned value of patrons' raw product received " 56,500 " Ending inventory Net realizable value " 35,596 " Lower of cost and net realizable value " 32,360 " Income taxes " 1,250 " Other costs and expenses " 56,580 " "Amounts paid to patrons, retains, and nonpatronage earnings" " 74,430 " Amounts due patrons at beginning of year Lower of cost and net realizable value method " 8,910 " Net realizable value method " 11,748 " ##### [330-905-55-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:49.173Z to 2026-09-09T23:51:49.173Z Record version: sha256:d417cf0e612cb7a9aa3278dee0fbbaf6bae05f184a1825222a1ba4b99479d1ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following tables illustrate the statement of net earnings prepared under each of two possible methods of accounting for inventories (columns A and B), the statement of net proceeds prepared under the [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.") method (column C), and the respective statements of amounts due patrons, if such latter statement is included in the financial statements. Column A demonstrates the lower of cost and net realizable value method with patrons' raw product being charged to cost of production at [assigned amounts](https://asc.understandingaccounting.org/glossary/a/#assigned-amounts "Amounts used to record products delivered by patrons of a marketing cooperative operating on a pooling basis, and the related liability to patrons if the ultimate amounts to be paid to patrons are determined when the pool is closed. These amounts may be established on the basis of current prices paid by other buyers (sometimes referred to as field prices), or they may be established by the cooperative's board of directors. The assigned amounts are sometimes referred to as established values."). Column B demonstrates the net realizable value method with patrons' raw product being charged to cost of production at assigned amounts. Column C demonstrates the net realizable value method when no amounts are assigned to patrons' raw product; therefore, there is no charge to cost of production for patrons' raw product. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-22A0FF8F-7F51-458D-AF8E-FFC80F529FEE-low.gif) Inventories Valued At Lower of Cost and Net Realizable Value (Column A) "Net Realizable Value (Column B)" "Net Realizable Value (Column C)" Sales " $129,630 " " $129,630 " " $129,630 " Costs and expenses (I) " 109,100 " " 108,702 " " 52,202 " Earnings before income taxes " 20,530 " " 20,928 " - Proceeds before income taxes - - " 77,428 " Income taxes " 1,250 " " 1,250 " " 1,250 " Net earnings " $19,280 " " $19,678 " Net proceeds " $76,178 " I. Beginning inventory " $28,380 " " $31,218 " " $31,218 " Assigned value of patrons' raw product received " 56,500 " " 56,500 " - Ending inventory " (32,360)" " (35,596)" " (35,596)" Other costs and expenses " 56,580 " " 56,580 " " 56,580 " " $109,100 " " $108,702 " " $52,202 " - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8D646031-1FE0-44AF-8DDC-9C2E944507DC-low.gif) Statement of Amounts Due Patrons Inventories Valued At Lower of Cost and Net Realizable Value (Column A) Net Realizable Value (Column B) Net Realizable Value (Column C) Amounts due patrons at beginning of year " $8,910 " " $11,748 " " $11,748 " Net earnings " 19,280 " " 19,678 " - Net proceeds - - " 76,178 " Assigned value of patrons' raw product received " 56,500 " " 56,500 " - " 84,690 " " 87,926 " " 87,926 " "Less amounts paid to patrons, retains, and nonpatronage earnings" " 74,430 " " 74,430 " " 74,430 " Amounts due patrons at end of year " $10,260 " " $13,496 " " $13,496 " ##### [330-905-55-4](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:51:49.173Z to 2026-09-09T23:51:49.173Z Record version: sha256:1a64ad430af6db14a6b1287a10183fc8319351d8309bc8d0221526ef942ec2fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the two inventory methods presented, the difference in amounts due patrons at the end of the year results from the difference in the ending inventory valuations, illustrated as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-E1F78FFB-2B5D-4D77-A389-3D89391CAA45-low.gif) Inventories of finished goods and goods in process at: Net realizable value " $35,596 " Lower of cost and net realizable value " (32,360)" " 3,326 " Amounts due patrons at end of year on lower of cost and net realizable value basis " 10,260 " Amounts due patrons at end of year on net realizable value basis " $13,496 "