# ASC 360-905-05: Property, Plant, and Equipment — Agriculture — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/905/#05-overview-and-background) 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): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:df7da859e4d361dbbd892cf2b6781793255d45bef32fa67f876fe877fe1588e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/905/#05-overview-and-background) SEC content: no ##### [360-905-05-1](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:990e7641a3057d140f8790f67024feefecbe599a273dcfc2f15c03407cd6dfe0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for property, plant, and equipment for entities in the agricultural industry. ##### [360-905-05-2](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:ac4e846893ddf8f563d9970a5c437d241b8cd4da527a77dbf4c4209a4875bc95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Development costs of land, trees and vines, [intermediate-life plants](https://asc.understandingaccounting.org/glossary/i/#intermediate-life-plants "Intermediate-life plants have growth and production cycles of more than one year but less than those of trees and vines."), and animals incurred by [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.") are different from inventoriable costs incurred in raising [crops](https://asc.understandingaccounting.org/glossary/c/#crops "Grains, vegetables, fruits, berries, nuts, and fibers grown by agricultural producers.") for harvest (see Subtopic 905-330). ##### [360-905-05-3](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:0b2ff0d480418b82a10a8e693150c364eaae0b4af7f0738e2429fbc30c5e29b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Land development generally includes improvements to bring the land into a suitable condition for general agricultural use and to maintain its productive condition. Some improvements are permanent; some have a limited life. Permanent land developments include, for example, clearing, initial leveling, terracing, and construction of earthen dams; they involve changes to the grade and contour of the ground and generally have an indefinite life if they are properly maintained. Limited-life developments usually include such items as water distribution systems and fencing and may also include the costs of wells, levees, ponds, drain tile, and ditches, depending on the climate, topography, soil conditions, and farming practices in the area. ##### [360-905-05-4](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:180154f67be033ab5373d997e42e45028c5bb34f005e570d9a4910a9399d988a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Orchards, [vineyards](https://asc.understandingaccounting.org/glossary/v/#vineyards "Grapevines planted in patterns for commercial cultivation and production."), and groves generally develop over several years before they reach [commercial production](https://asc.understandingaccounting.org/glossary/c/#commercial-production "The point at which production from an orchard, vineyard, or grove first reaches a level that makes operations economically feasible, based on prices normally expected to prevail."). Production continues for varying numbers of years, depending on such influences as type of plant, soil, and climate. During development, the plants normally require grafting, pruning, spraying, cultivation, or other care. ##### [360-905-05-5](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:4f9dd66a861c482005c5dd2084d4a6bc60877c9863882fec04c28edb8838732b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Intermediate-life plants include, for example, artichokes, various types of berries, asparagus, alfalfa, and grazing grasses. Development costs of intermediate-life plants include the cost of land preparation, plants, and cultural care until the plant, bush, or vine begins to produce in commercial quantities. ##### [360-905-05-6](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:3c62bbe688b592253ace93f492559850c9ebc0871311cb203a0e05b3e1938aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms [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.") and _animals_ are used interchangeably and are meant to include cattle, sheep, hogs, horses, poultry, and other small animals. The development of animals requires care and maintenance of the breeding stock and their [progeny](https://asc.understandingaccounting.org/glossary/p/#progeny "Offspring of animals or plants.") until their transfer from the brood herd. Animals purchased before maturity also require care and maintenance to ready them for productive use or sale. The animals are ultimately identified for transfer to [breeding herds](https://asc.understandingaccounting.org/glossary/b/#breeding-herds "Breeding herds consist of mature and immature male and female animals, either of registered or commercial grade, that are maintained for their progeny."), dairy herds, or other productive functions, are selected for sale, or are transferred to a feeding or other marketing operation. ##### [360-905-05-7](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:f44aac177348dd056e2b8bef74aca094bf536deee6c4f43c6d25b754f9314c5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some agricultural operations a field or [row crop](https://asc.understandingaccounting.org/glossary/r/#row-crops "See Field and Row Crops.") is raised for use in the development of another product, such as grain or hay used by the producer to feed livestock. ##### [360-905-05-8](https://asc.understandingaccounting.org/asc/360/905/#360-905-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:07:10.548Z to 2026-09-10T00:07:10.548Z Record version: sha256:c09988b7268095cd19fdf72945fa034b597eae06d635176e9010268fab0d15e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See also Section 905-10-05 for further background.