# ASC 705-905-25: Cost of Sales and Services — Agriculture — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/705/905/#25-recognition)

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## ASC 705-905-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/705/905/#25-recognition)

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### Cooperatives

##### [705-905-25-1](https://asc.understandingaccounting.org/asc/705/905/#705-905-25-1)

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See paragraph [905-405-25-1](https://asc.understandingaccounting.org/asc/405/905/#405-905-25-1) for guidance on amounts of liabilities to be established and the related amount to be charged to cost of goods sold when boards of directors assign amounts to unprocessed products received from [patrons](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.").

##### [705-905-25-2](https://asc.understandingaccounting.org/asc/705/905/#705-905-25-2)

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See paragraph [905-330-25-7](https://asc.understandingaccounting.org/asc/330/905/#330-905-25-7) indicating that cost of goods sold will not include a charge for unprocessed products received from patrons when amounts are not assigned to such products by the board of directors. See Example 1 (paragraph [905-330-55-1](https://asc.understandingaccounting.org/asc/330/905/#330-905-55-1)) for an illustration of this guidance.