{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/235/932/#sec-99-sec-materials","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"235","topic_title":"Notes to Financial Statements","subtopic":"235-932","subtopic_title":"Extractive Activities—Oil and Gas","section":{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"235-932-S99-1","para":"S99-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following is the text of SAB Topic 12.A.3, Disclosure of Reserve Information.<ul class=\"ul simple\" id=\"d3e514312-122864__GUID-FC23406B-F097-48C6-A643-F3EAE4AF0010\"><li class=\"li\" id=\"d3e514312-122864__SL6474779-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFF65A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">c. Limited partnership 10-K reports. </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474780-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFF77D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Facts: Securities Act Industry Guide 2 contains an exemption from the requirements of the Guide to disclose certain information relating to oil and gas operations for \"limited partnerships or joint ventures that conduct, operate, manage, or report upon oil and gas drilling income programs which acquire properties either for drilling and production, or for production of oil, gas, or geothermal steam.\" </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474781-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFF883-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Limited partnership agreements often contain buy-out provisions under which the general partner agrees to purchase limited partnership interests that are offered for sale, based upon a specified valuation formula. Because of these arrangements, the requirements for disclosure of reserve value information may be of little significance to the limited partners. </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474782-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFF987-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Question: Must the financial statements of limited partnerships included in reports on Form 10-K contain the disclosures of estimated future net revenues, present values and changes therein, and supplemental summary of oil and gas activities specified by in FASB ASC paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/235/932/#235-932-50-23\" class=\"xref\">932-235-50-23 through 50-36</a></div> (Extractive Activities—Oil and Gas Topic)? </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474783-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFFAD2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Interpretive Response: The staff will not take exception to the omission of these disclosures in a limited partnership Form 10-K if reserve value information is available to the limited partners pursuant to the partnership agreement (even though the valuations may be computed differently and may be as of a date other than year end). However, the staff will require all of the information listed in FASB ASC paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/235/932/#235-932-50-23\" class=\"xref\">932-235-50-23 through 50-36</a></div> for partnerships which are the subject of a merger or exchange offer under which various limited partnerships are to be combined into a single entity. </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474788-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFFBC9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">e. Rate regulated companies. </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474789-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFFCA5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Question: If a company has cost-of-service oil and gas producing properties, how should they be treated in the supplemental disclosures of reserve quantities and related future net revenues provided pursuant to FASB ASC paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/235/932/#235-932-50-29\" class=\"xref\">932-235-50-29 through 50-36</a></div>? </span></span></div></li><li class=\"li\" id=\"d3e514312-122864__SL6474790-122864\"><div class=\"p\"><span class=\"sfragment\" id=\"sfr_E8CFFD87-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Interpretive Response: Rule 4-10 provides that registrants may give effect to differences arising from the ratemaking process for cost-of-service oil and gas properties. Accordingly, in these circumstances, the staff believes that the company's supplemental reserve quantity disclosures should indicate separately the quantities associated with properties subject to cost-of-service ratemaking, and that it is appropriate to exclude those quantities from the future net revenue disclosures. The company should also disclose the nature and impact of its cost-of-service ratemaking, including the unamortized cost included in the balance sheet. </span></span></div></li></ul></div> </div>","snippet":"The following is the text of SAB Topic 12.A.3, Disclosure of Reserve Information.\nc. Limited partnership 10-K reports.\nFacts: Securities Act Industry Guide 2 contains an exemption from the requirements of the Guide to di…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ad523f87b124ce5a3d702737d6486c32372ffec4e4b195285f41e36a0e594be","downloaded_from":"2026-09-09T23:15:51.914Z","last_downloaded_at":"2026-09-09T23:15:51.914Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477759","source_sha256":"060e248eef960e101ad34900f666aeebf83538f71fdc3a3468814472345f3c6d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb5f836a28cae6f690303436094cb0bdd580dea32d9f53c05894f18976451d4c","downloaded_from":"2026-09-09T23:15:51.914Z","last_downloaded_at":"2026-09-09T23:15:51.914Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477759","source_sha256":"060e248eef960e101ad34900f666aeebf83538f71fdc3a3468814472345f3c6d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f1160c620993b14a25516b042d7f524f1ff12451b5ae5c7b6b095ef9df4731f","downloaded_from":"2026-09-09T23:15:51.914Z","last_downloaded_at":"2026-09-09T23:15:51.914Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477759","source_sha256":"060e248eef960e101ad34900f666aeebf83538f71fdc3a3468814472345f3c6d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f1160c620993b14a25516b042d7f524f1ff12451b5ae5c7b6b095ef9df4731f","downloaded_from":"2026-09-09T23:15:51.914Z","last_downloaded_at":"2026-09-09T23:15:51.914Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477759","source_sha256":"060e248eef960e101ad34900f666aeebf83538f71fdc3a3468814472345f3c6d"}}