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This proposed Statement presents accounting and reporting recommendations for the general-purpose financial statements of agricultural producers and agricultural cooperatives. The proposed statement recommends that growing crops of agricultural producers be reported at the lower of cost and market and that inventories of harvested crops and livestock held for sale also be reported at the lower of cost and market unless certain conditions are met. Permanent land development costs, such as clearing, initial leveling, terracing, and construction of earthen dams, would be capitalized but not depreciated. The proposed statement recommends that all direct and indirect costs of developing production animals be accumulated until the animals reach maturity. The proposed statement recommends that patrons account for deliveries of products to marketing cooperatives as sales if control over future economic benefits relating to the products has passed when the products are delivered to the cooperative. The proposed statement recommends that investments in cooperatives be reported at cost, including allocated equities and retains.
Agriculture -- Accounting; Agriculture, cooperative -- Accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Standards Division, "Proposed statement of position : accounting by agricultural producers and agricultural cooperatives;Accounting by agricultural producers and agricultural cooperatives" (1982). Statements of Position. 451.