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2. Significant Accounting Policies: Revenue Recognition (Policies)
9 Months Ended
May 31, 2018
Policies  
Revenue Recognition

Revenue recognition

 

The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the customer takes ownership and assumes the risk of loss. Depending on the specific item, our products are sold to customers either F.O.B ("Free-on-Board") origin or F.O.B. destination. For products shipped F.O.B origin, we have determined that the transfer and title and risk of loss generally occurs when product is shipped to the customer and accordingly we recognize revenue at the point of shipping. For products shipped F.O.B destination, we have determined that transfer of title and risk of loss generally occurs when product is received by the customer, and accordingly we recognize revenue at the point of delivery to the customer. Sales returns and allowances are estimated and recorded as a reduction to sales in the period in which sales are recorded. We record net shipping charges in cost of goods sold. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured.