# ASC 905-10-15: Agriculture — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:989cff6facea5ce503fc94a09a1fbb2535d8e02aec031869b3d9a07500676097 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 905-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [905-10-15-1](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:d16c627266783c9e7752bac1d38ff8182f187211cee51a803ab521da2df656b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Agriculture Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Agriculture Subtopics. Entities within the scope of this Topic shall also comply with the applicable standards not included in this Topic. ##### [905-10-15-2](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:a066d4c0d42c5465cc66b8774d412f0db981e255d6e1aad3932639daa039f7c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific qualifications noted in the other Subsections of this Section. #### Entities ##### [905-10-15-3](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:399f13c13424b3c4aac3b07ec80cf18062558add602441dcc25f660bd9023580 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Agriculture Topic provides guidance for all entities in the agricultural industry, including [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.") and [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."), with the exceptions noted below. ##### [905-10-15-4](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:7f2f4ade24bc81367819886345262948e60d9ff3ce0744ad1082708cc1b1f86c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a Growers of timber 2. b Growers of pineapple and sugarcane in tropical regions 3. c Raisers of animals for competitive sports 4. d Merchants or noncooperative processors of agricultural products that purchase commodities from growers, contract harvesters, or others serving agricultural producers. #### Transactions ##### [905-10-15-5](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:9218b873aa4886dc0da00fdf46e1f768c38791e1d3c2df2bd5b15668d3330feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the following transactions and activities: 1. a Inventories of agricultural producers 2. b 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 of agricultural producers. ### Cooperatives #### Overall Guidance ##### [905-10-15-6](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:4e16ec755af2fa9826bd763cad9f920364f5e3c1f250b10104e1ff207d74b71c 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 General Subsection of this Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15, with specific qualifications noted below. #### Entities ##### [905-10-15-7](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:23616549603ddc951e84f69637dc270a58d2bfd61422f53987d5edc7f3db5fc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Cooperatives Subsections applies to [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."). #### Transactions ##### [905-10-15-8](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:0bcdb498d02fa3d68cb3991af532abe2acc6b00e8f3c47e8daf5416208b7024d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Cooperatives Subsections applies to the following transactions and activities: 1. a Accounting by agricultural cooperatives for 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."). ### Cooperatives—Patrons #### Overall Guidance ##### [905-10-15-9](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:47f9170d8990b277cbeb4dc953a603456f517ddd0db04ee1dff3352b2bd72e3d 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 General Subsection of this Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15, with specific qualifications noted below. #### Entities ##### [905-10-15-10](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:fea1f4fdba07b2dcbd0a16f3e7f799d48daf03afc58805b851ed21ad4f2bca1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Cooperatives—Patrons Subsections applies to [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.") that are [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.") 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."). #### Transactions ##### [905-10-15-11](https://asc.understandingaccounting.org/asc/905/10/#905-10-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:44.157Z to 2026-09-10T02:08:44.157Z Record version: sha256:e500af48c354fade6587b44ce5abfc3f2131eda8501b1e314ebc15b5ce0c7adb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Cooperatives—Patrons Subsections applies to the following transactions and activities: 1. a Accounting by patrons for product deliveries to cooperatives 2. b Accounting by patrons for investments in and income from cooperatives.