FASB ASC 905 – Agriculture
FASB ASC Guide > FASB ASC 905
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 905 (ASC 905) to address topics relating to agriculture activity. The agriculture industry has several unique characteristics which are represented in the accounting. For example, depending on the type of crop grown, animal raised, and purpose for raising said animals, different accounting standards are implemented. Specifically, the revenue recognition aspect and inventory valuation methods can be substantially different than other industries depending on the agricultural assets involved. The organizational structure, such as being a sole proprietor or a member of a cooperative changes the accounting for agricultural activities as well.
Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!
For more in depth information on this and other FASB ASC topics, check out the following books.
loading...
I found it interesting that different accounting standards are implemented for certain aspects of agriculture. I assumed that the FASB help the same principles and standards for all businesses. This has furthered my interest in accounting for agriculture because I now want to know why the standards are different.
loading...
Thanks for your comment – it is certainly very interesting and one of the many things that I love about accounting!
loading...