{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/905/#25-recognition","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":"405","topic_title":"Liabilities","subtopic":"405-905","subtopic_title":"Agriculture","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Cooperatives","heading":"Pooling Cooperatives","paragraphs":[{"citation":"405-905-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_157A25D5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the boards of directors of agricultural marketing cooperatives operating on a pooling basis with no obligation to pay <a href=\"/glossary/p/#patrons\" class=\"term\" title=\"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.\"><span>patrons</span></a> fixed prices (pooling cooperatives) assign amounts that approximate estimated <a href=\"/glossary/n/#net-realizable-value\" class=\"term\" title=\"Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.\"><span>net realizable value</span></a> to unprocessed products received from patrons, the <a href=\"/glossary/a/#assigned-amounts\" class=\"term\" title=\"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.\"><span>assigned amounts</span></a> shall be credited to amounts due patrons. </span></span><span class=\"sfragment\" id=\"sfr_157A2759-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">When assigned amounts are used, they should approximate estimated net realizable value of unprocessed products delivered by patrons (an example of inventories at lower of cost and net realizable value is provided in Example 1 (see paragraph <a href=\"/asc/330/905/#330-905-55-1\" class=\"xref\">905-330-55-1</a>)). </span></span></div></div>","snippet":"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 net realizabl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba7664809340d0d7aa2a12f25e351fe55378fcf655f0034ef98cceb90bf8f014","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6b07f815a56fc465a10fd75070b633143ce293b19c083a7ca3d89fd660426ac","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}},{"block":"Cooperatives","heading":"Marketing Cooperatives","paragraphs":[{"citation":"405-905-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_157A28A5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The cooperative estimates a liability to patrons equal to the assigned amount for the delivered product, and it usually pays this liability on a short-term basis. The excess of revenues over the assigned amounts and operating costs at the end of a pool period, which may be a week, a month, a year, or longer, is paid or allocated to patrons. </span></span><span class=\"sfragment\" id=\"sfr_157A2B01-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Assets equal to that excess may be distributed to the patrons or retained by the cooperative. </span></span></div></div>","snippet":"The cooperative estimates a liability to patrons equal to the assigned amount for the delivered product, and it usually pays this liability on a short-term basis. The excess of revenues over the assigned amounts and oper…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a56870ab6cafa53ad699f5b43c5841b293a2bf5b5c41863ac673b2af1583f33","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36bbcc3f37a6514538cccba7bbeff070eb6ac83bb59904280b82b3661f0e25cf","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e131a9efd3086750bfdf265ab7c352919d1ca5ff46a1c928f235e37ac54f3e4","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e131a9efd3086750bfdf265ab7c352919d1ca5ff46a1c928f235e37ac54f3e4","downloaded_from":"2026-09-10T00:15:59.322Z","last_downloaded_at":"2026-09-10T00:15:59.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478826","source_sha256":"6ae7917e2fb977d66d072a9c9264a6111b9bd92860927aa8f422e1b9ef3d5c36"}}