# ASC 235-932-S99: Notes to Financial Statements — Extractive Activities—Oil and Gas — SEC 99 SEC Materials

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/235/932/#sec-99-sec-materials)

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.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-09T23:15:51.914Z to 2026-09-09T23:15:51.914Z

Record version: sha256:4f1160c620993b14a25516b042d7f524f1ff12451b5ae5c7b6b095ef9df4731f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 235-932-S99: SEC 99 SEC Materials

[Read section](https://asc.understandingaccounting.org/asc/235/932/#sec-99-sec-materials)

SEC content: yes

#### SEC Staff Guidance

##### [235-932-S99-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S99-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:15:51.914Z to 2026-09-09T23:15:51.914Z

Record version: sha256:1ad523f87b124ce5a3d702737d6486c32372ffec4e4b195285f41e36a0e594be

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The following is the text of SAB Topic 12.A.3, Disclosure of Reserve Information.

-   c. Limited partnership 10-K reports.
    
-   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."
    
-   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.
    
-   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
    
    [932-235-50-23 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-23)
    
    (Extractive Activities—Oil and Gas Topic)?
    
-   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
    
    [932-235-50-23 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-23)
    
    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.
    
-   e. Rate regulated companies.
    
-   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
    
    [932-235-50-29 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-29)
    
    ?
    
-   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.