# ASC 360-905-25: Property, Plant, and Equipment — Agriculture — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/360/905/#25-recognition)

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## ASC 360-905-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/360/905/#25-recognition)

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#### Permanent Land Development Costs

##### [360-905-25-1](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-1)

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[Permanent land development costs](https://asc.understandingaccounting.org/glossary/p/#permanent-land-development-costs "See Land Development Costs.") shall be capitalized.

#### Trees and Vines

##### [360-905-25-2](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-2)

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Trees and vines may be planted and brought to production by the producer or on a contract basis. The young trees and vines are usually purchased as nursery stock and transplanted into the [orchard](https://asc.understandingaccounting.org/glossary/o/#orchard "Fruit trees planted in geometric patterns to economically facilitate care of the trees and harvest of the fruit. See also Grove.") or vineyard in the desired pattern. Cultural costs during the development period, including stakes and wires, grafting, and labor for pruning and forming, shall be capitalized. Net proceeds from sales of products before [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.") begins shall be applied to the capitalized cost of the plants, trees, or vines.

#### Development Costs of Land, Orchards, Groves, Vineyards, and Intermediate-Life Plants

##### [360-905-25-3](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-3)

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[Limited-life land development costs](https://asc.understandingaccounting.org/glossary/l/#limited-life-land-development-costs "See Land Development Costs.") and direct and indirect development costs of orchards, groves, [vineyards](https://asc.understandingaccounting.org/glossary/v/#vineyards "Grapevines planted in patterns for commercial cultivation and production."), and [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.") shall be capitalized during the development period.

#### Breeding and Production Animals

##### [360-905-25-4](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-4)

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Except for animals with short productive lives classified as inventory under paragraph [905-330-25-3](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-3)all of the following shall be recognized as fixed assets:

1.  a
    
    Breeding animals
    
2.  b
    
    All livestock (which includes cattle, hogs, sheep, and goats)
    
3.  c
    
    Production animals.

#### Field or Row Crops

##### [360-905-25-5](https://asc.understandingaccounting.org/asc/360/905/#360-905-25-5)

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The costs involved in the production of the field or row crops for the producer's own use shall be identified as part of the maintenance costs of the livestock and accounted for in the same manner as other maintenance costs.