# ASC 235-932-55: Notes to Financial Statements — Extractive Activities—Oil and Gas — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/235/932/#55-implementation-guidance-and-illustrations)

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## ASC 235-932-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/235/932/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Illustrations

##### [235-932-55-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-1)

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The following Examples present formats that may be used to disclose certain information required by this Subtopic when a complete set of annual financial statements is presented for one year.

##### [235-932-55-2](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-2)

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This Example illustrates the guidance in paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3).

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-1FFCA9D8-8EDA-4C22-9244-2A8DE60C4141-low.gif)
    
    "RESERVE QUANTITY INFORMATION (a) FOR THE YEAR ENDED DECEMBER 31, 20X0" Total Total—by product Continent A Continent B—Country A Other Countries in Continent B Other Continents / Countries Oil All Products Synthetic Oil Oil Synthetic Oil Oil "Synthetic Oil" Oil Synthetic Oil Oil Synthetic Oil Proved developed and undeveloped reserves (consolidated entities only): Beginning of year X X X X X X X X X X X "Revisions of previous estimates " X X X X X X X X X X X Improved recovery X X X X X X X X X X X Purchases of minerals in place X X X X X X X X X X X Extensions and discoveries X X X X X X X X X X X Production (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) Sales of minerals in place (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) End of year X (b) X X X X X X X X X X Entity's share of proved developed and undeveloped reserves of investees accounted for by the equity method Beginning of the year X X X X X X X X X X X Revisions of previous estimates X X X X X X X X X X X Improved recovery X X X X X X X X X X X Purchases of minerals in place X X X X X X X X X X X Extensions and discoveries X X X X X X X X X X X Production (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) Sales of minerals in place (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) (X) Entity's share of reserves of investees accounted for by the equity method—end of year X X X X X X X X X X X Total consolidated and equity interests in reserves—end of year X X X X X X X X X X X "Note: Total consolidated and equity interests in reserves—end of year is permitted, but is not required (see paragraph 932-235-50-6(c))."
    
-   ![](https://asc.understandingaccounting.org/asc-img/GUID-3E68ED4B-082E-4298-81B1-C100A467FC5F-low.gif)
    
    "RESERVE QUANTITY INFORMATION FOR THE YEAR ENDED DECEMBER 31, 20X0 Continued" Total Total—by product Continent A Continent B—Country A Other Countries in Continent B Other Continents / Countries All Products Oil Synthetic Oil Oil Synthetic Oil Oil Synthetic Oil Oil Synthetic Oil Oil Synthetic Oil Proved developed reserves (consolidated entities only): Beginning of year X X X X X X X X X X X End of year X X X X X X X X X X X Proved undeveloped reserves (consolidated entities only): Beginning of year X X X X X X X X X X X End of year X X X X X X X X X X X "Oil and gas subject to long-term supply, purchase, or similar agreements with governments or authorities in which the entity participates in the operation of the properties where the oil or gas is located or otherwise serves as the producer of those reserves (consolidated entities only):" Total under contract (quantity subject to agreement)—end of year X X X X X X X X X X X Received during the year X X X X X X X X X X X (a) Oil and synthetic oil reserves stated in barrels. (b) Includes reserves of X barrels attributable to a consolidated subsidiary in which there is an X percent noncontrolling interest. Notes: "If applicable, reserve quantity information is required for gas and synthetic gas reserves, and other products by paragraph 932-235-50-4. " "The table above discloses quantities of proved developed and undeveloped reserves, and oil and gas subject to long-term supply, purchase, or similar agreements with governments or authorities in which the entity participates in the operation of the properties where the oil or gas is located or otherwise serves as the producer of those reserves, attributable to consolidated entities (see paragraphs 932-235-50-4 and 50-7). The entity shall disclose the same information for the entity's share of reserves of investees accounted for by the equity method, if applicable (see paragraph 932-235-50-8)." "The table above discloses information for the total quantity of reserves for all products, in addition to disclosing the information by product. This disclosure is permitted, but is not required (see paragraph 932-235-50-4)."

##### [235-932-55-3](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-3)

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This Example illustrates the guidance in paragraphs

[932-235-50-12 through 50-15](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-12)

.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-E78A350B-E5E2-4454-A946-C95C19B11C64-low.gif)
    
    "CAPITALIZED COSTS RELATING TO OIL- AND GAS-PRODUCING ACTIVITIES AT DECEMBER 31, 20X0" Consolidated Entity's Share of Equity Method Investees Unproved oil and gas properties $X $X Proved oil and gas properties X X X X "Accumulated depreciation, depletion, and amortization, and valuation allowances" X X Net capitalized costs $X $X

##### [235-932-55-4](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-4)

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This Example illustrates the guidance in paragraphs

[932-235-50-17 through 50-20](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-17)

.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-E6D4AD91-E79C-47F4-8DD6-C9603040E24C-low.gif)
    
    "COSTS INCURRED IN OIL AND GAS PROPERTY ACQUISITION, EXPLORATION, AND DEVELOPMENT FOR THE YEAR ENDED DECEMBER 31, 20X0" Total Continent A Continent B—Country A Other Countries in Continent B Other Continents / Countries Consolidated entities: Acquisition of properties Proved $X $X $X $X $X Unproved X X X X X Exploration costs X X X X X Development costs X X X X X Entity's share of equity method investees: Acquisition of properties Proved $X $X $X $X $X Unproved X X X X X Exploration costs X X X X X Development costs X X X X X

##### [235-932-55-5](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-5)

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This Example illustrates the guidance in paragraphs

[932-235-50-21 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21)

.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-E802926F-3613-4713-964F-D5AF356B5226-low.gif)
    
    "RESULTS OF OPERATIONS FOR OIL- AND GAS- PRODUCING ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 20X0" Total Continent A Continent B—Country A Other Countries in Continent B Other Continents / Countries Consolidated entities: Revenues Sales $X $X $X $X $X Transfers X X X X X Total X X X X X Production costs (X) (X) (X) (X) (X) Exploration expenses (X) (X) (X) (X) (X) "Depreciation, depletion, and amortization, and valuation provisions" (X) (X) (X) (X) (X) X X X X X Income tax expenses (X) (X) (X) (X) (X) Results of operations from producing activities (excluding corporate overhead and interest costs) $X $X $X $X $X Entity's share of equity method investees: Revenues Sales $X $X $X $X $X Transfers X X X X X Total X X X X X Production costs (X) (X) (X) (X) (X) Exploration expenses (X) (X) (X) (X) (X) "Depreciation, depletion, and amortization, and valuation provisions" (X) (X) (X) (X) (X) X X X X X Income tax expenses (X) (X) (X) (X) (X) Results of operations for producing activities (excluding corporate overhead and interest costs) $X $X $X $X $X Total consolidated and equity method investees results of operations for producing activities (excluding corporate overhead and interest costs) $X $X $X $X $X "Note: Disclosure of the total consolidated and equity method investees results of operations for producing activities (excluding corporate overhead and interest costs) is permitted, but not required (see paragraph 935-235-50-28)."

##### [235-932-55-6](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-6)

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This Example illustrates the guidance in paragraphs

[932-235-50-29 through 50-33](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-29)

.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-439620D9-86B9-44F5-ACCA-0CCC84131961-low.gif)
    
    "STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS AT DECEMBER 31, 20X0" Total Continent A Continent B —Country A "Other Countries in Continent B " Other Continents / Countries Consolidated entities: Future cash inflows (a) $X $X $X $X $X Future production and development costs (a) (X) (X) (X) (X) (X) Future income tax expenses (a) (X) (X) (X) (X) (X) Future net cash flows X X X X X 10% annual discount for estimated timing of cash flows (X) (X) (X) (X) (X) Standardized measure of discounted future net cash flows $X (b) $X $X $X $X Entity's share of equity method investees: Future cash inflows (a) $X $X $X $X $X Future production and development costs (a) (X) (X) (X) (X) (X) Future income tax expenses (a) (X) (X) (X) (X) (X) Future net cash flows X X X X X 10% annual discount for estimated timing of cash flows (X) (X) (X) (X) (X) Standardized measure of discounted future net cash flows $X $X $X $X $X Total consolidated and equity interests in the standardized measure of discounted future cash flows $X $X $X $X $X (a) "Future net cash flows were computed using prices used in estimating the entity's (or the investee's) proved oil and gas reserves, and year-end costs, and statutory tax rates (adjusted for tax deductions) that relate to existing proved oil and gas reserves. This includes those mineral interests related to long-term supply agreements with governments for which the entity (or the investee) participates in the operation of the related properites or otherwise serves as the producer of the reserves, but does not include other supply arrangements or contracts that represent the right to purchase (as opposed to extract) oil and gas (see paragraph 932-235-50-7)." (b) Includes $X attributable to a consolidated subsidary in which there is an X percent noncontrolling interest. "Note: Disclosure of total consolidated and equity interests in the standardized measure of discounted future cash flows is permitted, but is not required (see paragraph 935-235-50-33)."

##### [235-932-55-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-7)

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This Example illustrates the guidance in paragraphs [932-235-50-34 through 50-35A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-34).

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-18D1C2DC-6D10-4B63-A615-1BAB17E7570B-low.gif)
    
    "CHANGES IN THE STANDARDIZED MEASURE FOR DISCOUNTED CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 20X0 " Consolidated Entity's Share of Equity Method Investees Total Consolidated and Entity's Share of Equity Method Investees Net change in sales and transfer prices and in production (lifting) costs related to future production $X $X $X Changes in estimated future development costs X X X Sales and transfers of oil and gas produced during the period (X) (X) (X) "Net change due to extensions, discoveries, and improved recovery" X X X Net change due to purchases and sales of minerals in place X X X Net change due to revisions in quantity estimates X X X Previously estimated development costs incurred during the period X X X Accretion of discount X X X Other—unspecified X X X Net change in income taxes X X X Aggregate change in the standardized measure of discounted future net cash flows for the year X X X "Note: Disclosure of total consolidated and entity's share of equity method investees amounts is permitted, but is not required (see paragraph 935-235-50-35A)."