# ASC 235-932: Notes to Financial Statements — Extractive Activities—Oil and Gas Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/235/932/) 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): 2026-09-09T23:15:19.640Z to 2026-09-09T23:15:51.914Z Record version: sha256:f2088a724b6da0c178684c976aac71e8605cea1dd57d864c5b4e2fddd62022db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932: Notes to Financial Statements — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "summary": "ASC 932-235 sets the note and supplemental disclosure requirements for entities with oil- and gas-producing activities. All such entities must disclose their cost accounting method (successful efforts vs. full cost), how capitalized costs are disposed of, and information about exploratory well costs still capitalized pending determination of proved reserves. Publicly traded companies with significant oil and gas activities must additionally provide, as supplementary information with annual statements, proved reserve quantities and changes, capitalized costs, costs incurred, results of operations, the standardized measure of discounted future net cash flows, and changes in that measure.", "key_points": [ "All entities engaged in oil- and gas-producing activities must disclose the method of accounting for costs incurred and the manner of disposing of capitalized costs (932-235-50-1).", "Continued capitalization of exploratory well costs is a required note disclosure (expressly not supplementary): amounts pending determination of proved reserves with a rollforward of additions, reclassifications to wells/equipment, and charges to expense; amounts capitalized more than one year after completion of drilling with an aging and project count; and a description of the projects and remaining activities needed to classify reserves as proved (932-235-50-1A through 50-1B).", "Publicly traded companies with significant oil- and gas-producing activities must disclose, as supplementary information with complete annual financial statements, the seven categories listed in 932-235-50-2.", "Net proved, proved developed, and proved undeveloped reserve quantities of oil, gas, synthetic oil/gas, and other nonrenewable resources must be disclosed at the beginning and end of year, with changes broken out by revisions of previous estimates, improved recovery, purchases of minerals in place, extensions and discoveries, production, and sales of minerals in place (932-235-50-4 through 50-5).", "Reserve, cost, results-of-operations, and standardized measure disclosures must be presented in the aggregate and separately by geographic area, at a minimum for each country containing 15 percent or more of proved reserves on an oil-equivalent-barrels basis (932-235-50-6 through 50-6B).", "Results of operations for oil- and gas-producing activities equal revenues less production (lifting) costs, exploration expenses, DD&A and valuation provisions, and income taxes at the statutory rate, excluding general corporate overhead and interest costs (932-235-50-23 through 50-26).", "The standardized measure applies prices used in estimating proved reserves to year-end quantities, subtracts future development and production costs at year-end costs and future income taxes at year-end statutory rates, and discounts at 10 percent per year; equity method investee amounts are generally disclosed separately from consolidated entities (932-235-50-31, 50-33)." ], "categories": [ "Disclosure", "Industry-specific", "Presentation" ], "audience_level": "advanced", "student_note": "This is the classic supplemental oil and gas disclosure package presented with E&P company financial statements; the standardized measure is a prescribed computation (reserve-estimation prices, year-end costs, 10% discount) and is not the fair value of the reserves. A common mistake is treating the exploratory well cost disclosures as supplementary—932-235-50-1A makes them required notes for all entities with oil and gas activities, not just public companies.", "related_topics": [ "932-10", "932-360", "932-720", "606-10", "360-10", "280-10" ], "key_concepts": [ "proved oil and gas reserves", "standardized measure of discounted future net cash flows", "exploratory well costs pending determination of proved reserves", "costs incurred for acquisition, exploration, and development", "results of operations for oil- and gas-producing activities", "successful efforts and full cost methods", "geographic area disclosure", "equity method investee disaggregation" ] } ``` Source downloaded (UTC): 2026-09-09T23:15:19.640Z to 2026-09-09T23:15:19.640Z Record version: sha256:3195cb9adb5788f63fe0acd2eba9ca01f21dbb957920e8273445563543dacf2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/235/932/#00-status) SEC content: no ##### [235-932-00-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:19.640Z to 2026-09-09T23:15:19.640Z Record version: sha256:bd305b177d30e9df24c158b05f8a172ed7cc6a2139d403531f88c79132449f46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Exploratory WellAmendedAccounting Standards Update No. 2010-0301/06/2010
Oil- and Gas-Producing ActivitiesAddedAccounting Standards Update No. 2010-0301/06/2010
ProductionAmendedAccounting Standards Update No. 2010-0301/06/2010
PropertiesAmendedAccounting Standards Update No. 2010-0301/06/2010
Proved Developed Oil and Gas ReservesAmendedAccounting Standards Update No. 2010-0301/06/2010
Proved Oil and Gas ReservesAmendedAccounting Standards Update No. 2010-0301/06/2010
Proved Undeveloped Oil and Gas ReservesAmendedAccounting Standards Update No. 2010-0301/06/2010
Significant ActivitiesAmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-1AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-1A through 50-1C
AddedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-2AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-2AAddedAccounting Standards Update No. 2023-0610/09/2023
932-235-50-4AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-6AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-6AAddedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-6BAddedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-7 through 50-9
AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-11AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-11AAddedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-11BAddedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-15AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-16SupersededAccounting Standards Update No. 2010-0301/06/2010
932-235-50-19AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-20AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-23AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-24AmendedAccounting Standards Update No. 2014-0905/28/2014
932-235-50-27AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-28AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-30AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-31AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-33AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-35AmendedAccounting Standards Update No. 2010-0301/06/2010
932-235-50-35AAddedAccounting Standards Update No. 2010-0301/06/2010
932-235-55-2 through 55-7
AmendedAccounting Standards Update No. 2010-0301/06/2010
Source downloaded (UTC): 2026-09-09T23:15:23.385Z to 2026-09-09T23:15:23.385Z Record version: sha256:32a4da1defe1f1332084cce09420f2003a0a41b57472978f0743e46a564c16f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/235/932/#05-overview-and-background) SEC content: no ##### [235-932-05-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:23.385Z to 2026-09-09T23:15:23.385Z Record version: sha256:59f85d92076439e320464aa3ce7a88dc4921d6e9a70d5a771fc79d79030444c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses supplemental disclosure requirements for oil and gas operations. Required disclosures include: 1. a [Proved oil and gas reserve](https://asc.understandingaccounting.org/glossary/p/#proved-oil-and-gas-reserves "Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time.The area of the reservoir considered as proved includes all of the following: The area identified by drilling and limited by fluid contacts, if any Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establish a lower contact with reasonable certainty.Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.Reserves that can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when both of the following occur: Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based. The project has been approved for development by all necessary parties and entities, including governmental entities. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.") quantities (see paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3) ) 2. b Capitalized costs relating to oil- and gas-producing activities (see paragraphs [932-235-50-12 through 50-15](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-12) ) 3. c Continued capitalization of [exploratory well](https://asc.understandingaccounting.org/glossary/e/#exploratory-well "An exploratory well is a well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir. Generally, an exploratory well is any well that is not a development well, a service well , or a stratigraphic test well.") costs (see paragraphs [932-235-50-1A through 50-1B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-1A) ) 4. d Costs incurred for property acquisition, [exploration](https://asc.understandingaccounting.org/glossary/e/#exploration "Exploration involves both of the following: Identifying areas that may warrant examination Examining specific areas that are considered to have prospects of containing oil and gas reserves, including drilling exploratory wells and exploratory-type stratigraphic test wells."), and development (see paragraphs [932-235-50-17 through 50-20](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-17) ) 5. e Results of operations of oil- and gas-producing activities (see paragraphs [932-235-50-21 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21) ) 6. f A standardized measure of discounted future net cash flows related to proved oil and gas reserve quantities (see paragraphs [932-235-50-29 through 50-33](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-29) ) Source downloaded (UTC): 2026-09-09T23:15:26.959Z to 2026-09-09T23:15:26.959Z Record version: sha256:72bd688760e0fce4c7dd5b9c2e3dbbdd5ac95d0a4c1b7ff1511cb6d3278bdb84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/235/932/#10-objectives) SEC content: no ##### [235-932-10-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:26.959Z to 2026-09-09T23:15:26.959Z Record version: sha256:c01d68c298a8b81ac7a8d89a6897d7acce53e3b6fcd036533c4fc85a35e70b99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic prescribes disclosures related to an entity's oil- and gas-producing activities that are considered necessary for fair presentation of the entity's financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles (GAAP). Those disclosures are only part of the information that may be needed for investment, regulatory, or national economic planning and energy policy decisions. Source downloaded (UTC): 2026-09-09T23:15:29.409Z to 2026-09-09T23:15:29.409Z Record version: sha256:2f4d06aec9ea747a24a7c99a68d8d7466f66a923521dd6f5ba3f80f988d38159 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/235/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [235-932-15-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:29.409Z to 2026-09-09T23:15:29.409Z Record version: sha256:ca3f743f6adac30638283977f713b1a9f7502cd3b4ecdd2d460a6e23937f7b7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15. Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:83b65cd4ca1deefa2208f51c1853120def71c05febf37e9b83ac4c10ed81aee9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/235/932/#50-disclosure) SEC content: no #### All Entities ##### [235-932-50-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:f6d9616a9544ae5adee269c6542319faca531cd21975c8bff841c0f23c2e1441 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All entities engaged in [oil- and gas-producing activities](https://asc.understandingaccounting.org/glossary/o/#oil-and-gas-producing-activities "Paragraph 932-10-15-2A defines the term oil- and gas-producing activities.") shall disclose in their financial statements the method of accounting for costs incurred in those activities and the manner of disposing of capitalized costs relating to those activities. ##### [235-932-50-1A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:30f1c42da1ef100b6fd123997811e23b0d0359d8a44424f24dca1d69f03abbc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that has oil- and gas-producing activities also shall disclose, with complete sets of annual financial statements, information about continued capitalization of [exploratory well](https://asc.understandingaccounting.org/glossary/e/#exploratory-well "An exploratory well is a well drilled to find a new field or to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir. Generally, an exploratory well is any well that is not a development well, a service well , or a stratigraphic test well.") costs (see the following paragraph). That disclosure is not considered to be supplementary information. ##### [235-932-50-1B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:80c417254409dcdda119c601896d0f81a02fa902d882d978c50b5900d06c574a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall make the following disclosures in the notes to the annual financial statements to provide information for users of financial statements about management's application of judgment in its evaluation of a project's capitalized exploratory well costs. These disclosures are not required routinely in interim financial statements; however, interim financial statements shall include information about significant changes from the information presented in the most recent annual financial statements. Any impairment of capitalized exploratory well costs that were capitalized for a period of greater than one year after the completion of drilling at the most recent annual balance sheet date shall be considered significant for purposes of determining whether the change shall be disclosed in interim financial statements. All of the following disclosures are required: 1. a The amount of capitalized exploratory well costs that is pending the determination of proved reserves. An entity also shall separately disclose for each annual period that an income statement is presented changes in those capitalized exploratory well costs resulting from all of the following: 1. 1 Additions to capitalized exploratory well costs that are pending the determination of proved reserves 2. 2 Capitalized exploratory well costs that were reclassified to wells, equipment, and facilities based on the determination of proved reserves 3. 3 Capitalized exploratory well costs that were charged to expense. This disclosure shall not include amounts that were capitalized and subsequently expensed in the same annual period. 2. b The amount of exploratory well costs that have been capitalized for a period of greater than one year after the completion of drilling at the most recent balance sheet date and the number of projects for which those costs relate. Additionally, for exploratory well costs that have been capitalized for periods greater than one year at the most recent balance sheet date, an entity shall provide an aging of those amounts by year, or by using a range of years, and the number of projects to which those costs relate. 3. c For exploratory well costs that continue to be capitalized for more than one year after the completion of drilling at the most recent balance sheet date, a description of the projects and the activities that the entity has undertaken to date in order to evaluate the reserves and the projects, and the remaining activities required to classify the associated reserves as proved. #### Publicly Traded Companies ##### [235-932-50-1C](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-1C) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:ebcaa927ccaeba787ab7ad7cd949d298ca42dc887066fefc0be88a72fa9001e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity is not required to make the disaggregated disclosures about its equity method investments required by paragraphs [932-235-50-2 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-2) if both of the following conditions are met: 1. a The entity's equity method investments were acquired before December 31, 2009. 2. b After making an exhaustive effort, the entity is unable to obtain the information necessary to provide the required disclosures. If the preceding conditions are met, the entity shall continue to provide the disclosures required by those paragraphs in the aggregate and it shall disclose why it was not able to obtain the disaggregated information. This paragraph applies only as long as the entity continues to be unable to obtain the necessary information. ##### [235-932-50-2](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:a6ff825d14a670748b5ad114e49378469a37f2b0dfe85022f1bbcbf4c1d48f6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Publicly traded companies](https://asc.understandingaccounting.org/glossary/p/#publicly-traded-company "A business entity that has any of the following characteristics: Whose securities are traded in a public market on a domestic stock exchange or in the domestic over-the-counter market (including securities quoted only locally or regionally) That is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets) Whose financial statements are filed with a regulatory agency in preparation for the sale of any class of securities in a domestic market.") that have [significant oil- and gas-producing activities](https://asc.understandingaccounting.org/glossary/s/#significant-oil-and-gas-producing-activities "An entity is regarded as having significant oil- and gas-producing activities if it satisfies any of the following criteria. The criteria shall be applied separately for each year for which a complete set of annual financial statements is presented. Revenues from oil- and gas-producing activities, as defined in paragraph 932-235-50-24 (including both sales to unaffiliated customers and sales or transfers to the entity's other operations), are 10 percent or more of the combined revenues (sales to unaffiliated customers and sales or transfers to the entity's other operations) of all of the entity's industry segments. An industry segment is a component of an entity engaged in providing a product or service or a group of related products or services primarily to external customers (that is, customers outside the entity) for a profit. Results of operations for oil- and gas-producing activities, including equity earnings or losses from oil- and gas- producing activities of equity method investees and excluding the effect of income taxes, are 10 percent or more of the greater of the following: The combined operating profit (including equity earnings) of all industry segments that did not incur an operating loss The combined operating loss (including equity losses) of all industry segments that did incur an operating loss. The identifiable assets of oil- and gas-producing activities (tangible and intangible entity assets that are used by oil- and gas-producing activities, including an allocated portion of assets used jointly with other operations and the investment balance in the oil- and gas-producing activities of equity method investees) are 10 percent or more of the assets of the entity, excluding assets used exclusively for general corporate purposes.") shall disclose with complete sets of annual financial statements the information required by the remainder of this Section. Those disclosures relate to the following and are considered to be supplementary information: 1. a [Proved oil and gas reserve](https://asc.understandingaccounting.org/glossary/p/#proved-oil-and-gas-reserves "Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time.The area of the reservoir considered as proved includes all of the following: The area identified by drilling and limited by fluid contacts, if any Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establish a lower contact with reasonable certainty.Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.Reserves that can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when both of the following occur: Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based. The project has been approved for development by all necessary parties and entities, including governmental entities. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.") quantities (see paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3)) 2. b Capitalized costs relating to oil- and gas-producing activities (see paragraphs [932-235-50-12 through 50-15](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-12) ) 3. c [Subparagraph superseded by Accounting Standards Update No. 2010-03](https://asc.understandingaccounting.org/updates/asu-2010-03/). 4. d Costs incurred for property acquisition, [exploration](https://asc.understandingaccounting.org/glossary/e/#exploration "Exploration involves both of the following: Identifying areas that may warrant examination Examining specific areas that are considered to have prospects of containing oil and gas reserves, including drilling exploratory wells and exploratory-type stratigraphic test wells."), and development activities (see paragraphs [932-235-50-17 through 50-20](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-17) ) 5. e Results of operations for oil- and gas-producing activities (see paragraphs [932-235-50-21 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21) ) 6. f A standardized measure of discounted future net cash flows relating to proved oil and gas reserve quantities (see paragraphs [932-235-50-29 through 50-33](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-29) ) 7. g Changes in the standardized measure of discounted future net cash flows (see paragraphs [932-235-50-34 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-34) ). ##### [235-932-50-2A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-2A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:45fc470c4691ff4a7a1c432113bbc1272d51822c18bbb1aec92089e8c011c49f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7) For disclosure requirements in paragraphs [932-235-50-3 through 50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3), an entity shall disclose all of the following: 1. a Information that relates to annual periods for each annual period for which a statement of comprehensive income is required 2. b Information required as of the end of an annual period for which a balance sheet is required 3. c Information required as of the beginning of an annual period for each annual period for which a statement of comprehensive income is required. ##### [235-932-50-3](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:ccf3daff8450edf5beb3905d3c19c1b89dd88628022bae8c5b70d800207cef38 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraph [932-235-55-2](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-2)) for an illustration of these requirements. ##### [235-932-50-4](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:9967897f6c286be0e451b37cd35b160eee8aad33f7ab455c4b03923538d628b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net quantities of an entity's interests in proved oil and gas reserves, [proved developed oil and gas reserves](https://asc.understandingaccounting.org/glossary/p/#proved-developed-oil-and-gas-reserves "Proved developed oil and gas reserves are proved reserves that can be expected to be recovered: Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well."), and [proved undeveloped oil and gas reserves](https://asc.understandingaccounting.org/glossary/p/#proved-undeveloped-oil-and-gas-reserves "Proved undeveloped oil and gas reserves are proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances. Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time. Under no circumstances shall estimates for proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.") of each of the following shall be disclosed as of the beginning and the end of the year: 1. a Crude oil, including condensate and natural gas liquids (If significant, the reserve quantity information shall be disclosed separately for natural gas liquids.) 2. b Natural gas 3. c Synthetic oil 4. d Synthetic gas 5. e Other nonrenewable natural resources that are intended to be upgraded into synthetic oil and gas. Net quantities of reserves include those relating to the entity's operating and nonoperating interests in [properties](https://asc.understandingaccounting.org/glossary/p/#properties "Mineral interests in properties (hereinafter referred to as properties), which include all of the following: Fee ownership or a lease Concession Other interest representing the legal right to produce or a revenue interest in the production of oil or gas subject to such terms as may be imposed by the conveyance of that interest. Properties also include: Royalty interests Production payments payable in oil or gas Other nonoperating interests in properties operated by others. Properties include those agreements with foreign governments or authorities under which an entity participates in the operation of the related properties or otherwise serves as producer of the underlying reserves (see paragraph 932-235-50-7); but properties do not include other supply agreements or contracts that represent the right to purchase (as opposed to extract) oil and gas. Properties are classified as proved properties or unproved properties."). Quantities of reserves relating to royalty interests owned shall be included in net quantities if the necessary information is available to the entity; if reserves relating to royalty interests owned are not included because the information is unavailable, that fact and the entity's share of oil and gas produced for those royalty interests shall be disclosed for the year. Net quantities shall not include reserves relating to interests of others in properties owned by the entity. ##### [235-932-50-5](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:a80bb4a9ece81fccb538ff1265631c2979cdd060a761d81c37df9a3a8ba810d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in the net quantities of an entity's proved reserves of oil and of gas during the year shall be disclosed. Changes resulting from all of the following shall be shown separately with appropriate explanation of significant changes: 1. a Revisions of previous estimates. Revisions represent changes in previous estimates of proved reserves, either upward or downward, resulting from new information (except for an increase in proved acreage) normally obtained from development drilling and [production](https://asc.understandingaccounting.org/glossary/p/#production "Production involves lifting the crude oil and natural gas to the surface, extracting saleable hydrocarbons, in the solid, liquid, or gaseous state from oil sands, shale, coalbeds, or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas, gathering, treating, field processing (as in the case of processing gas to extract liquid hydrocarbons), and field storage. The oil and gas production function shall be regarded as ending at a terminal point, which is the outlet valve on the lease or field storage tank. If unusual physical or operational circumstances exist, it may be appropriate to regard the terminal point for the production function as: The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser before upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility that upgrades such natural resources into synthetic oil or gas.") history or resulting from a change in economic factors. 2. b Improved recovery. Changes in reserve estimates resulting from application of improved recovery techniques shall be shown separately, if significant. If not significant, such changes shall be included in revisions of previous estimates. 3. c Purchases of minerals in place. 4. d Extensions and discoveries. Additions to proved reserves that result from either of the following: 1. 1 Extension of the proved acreage of previously discovered (old) reservoirs through additional drilling in periods subsequent to discovery 2. 2 Discovery of new fields with proved reserves or of new reservoirs of proved reserves in old fields. 5. e Production. 6. f Sales of minerals in place. ##### [235-932-50-6](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:47135deb79bc1c44af6cfccc86fa1ad093e8a76ad49c21099bda76ebf523edcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures of net quantities of proved reserves of oil and of gas and changes in them required by paragraphs [932-235-50-4 through 50-5](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-4) shall be presented in the aggregate and separately by geographic area (see the following paragraph) in which significant reserves (see paragraph [932-235-50-6B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6B)) are located. If an entity's proved reserves of oil and of gas are located entirely within its home country, the entity shall disclose that fact. ##### [235-932-50-6A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6A) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:d912eb3c7c7b5929e4ed6cad463c729dbd069c4ddad694df536a081a1ad1b47d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any one of the following may constitute a geographic area, as appropriate for meaningful disclosure in the circumstances: 1. a An individual country 2. b A group of countries within a continent 3. c A continent. ##### [235-932-50-6B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6B) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:6dc22a29f78956e8a206ba7614dab17f1a24b00ccefd7fba3c6eab7e9fe8b902 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining whether reserves are significant: 1. a An entity shall consider all facts and circumstances and not solely the quantity of reserves. 2. b At a minimum, net quantities of reserves shall be presented in the aggregate and separately by geographic area and for each country containing 15 percent or more of an entity's proved reserves, expressed on an oil-equivalent-barrels basis. Reserves shall include an entity's proportionate share of reserves of equity method investees. ##### [235-932-50-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:454501b48cdcd545c3098854359bf76c416d781da1bc53342d69ddadd4d194b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net quantities disclosed in conformity with paragraphs [932-235-50-4 through 50-6B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-4) shall not include oil or gas subject to purchase under long-term supply, purchase, or similar agreements and contracts, including such agreements with governments or authorities. However, quantities of oil or gas subject to such agreements with governments or authorities as of the end of the year, and the net quantity of oil or gas received under the agreements during the year, shall be separately disclosed if the entity participates in the operation of the properties in which the oil or gas is located or otherwise serves as the producer of those reserves, as opposed, for example, to being an independent purchaser, broker, dealer, or importer. ##### [235-932-50-8](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:51e0f7d185ca93251d2b0697bf900c1087de05cb63dd9fb346eef5f5e3d510d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining the reserve quantities to be disclosed in conformity with paragraphs [932-235-50-4 through 50-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-4) : 1. a If the entity issues [consolidated financial statements](https://asc.understandingaccounting.org/glossary/c/#consolidated-financial-statements "The financial statements of a consolidated group of entities that include a parent and all its subsidiaries presented as those of a single economic entity."), 100 percent of the net reserve quantities attributable to the [parent](https://asc.understandingaccounting.org/glossary/p/#parent "An entity that has a controlling financial interest in one or more subsidiaries. (Also, an entity that is the primary beneficiary of a variable interest entity.)") and 100 percent of the net reserve quantities attributable to its consolidated [subsidiaries](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)") (whether or not wholly owned) shall be included. If a significant portion of those reserve quantities at the end of the year is attributable to a consolidated subsidiary or subsidiaries in which there is a significant [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest."), that fact and the approximate portion shall be disclosed. 2. b If the entity's financial statements include investments that are proportionately consolidated, the entity's reserve quantities shall include its proportionate share of the investees' net oil and gas reserves. 3. c If the entity's financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the net reserve quantities required by paragraphs [932-235-50-4 through 50-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-4) for both of the following: 1. 1 Consolidated entities 2. 2 The entity's share of equity method investees. The entity may, in addition to separate disclosure, disclose a combined total for items (1) and (2) for each of the quantities required to be disclosed by this paragraph. ##### [235-932-50-9](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:85bc59ffeb9ca41127bbf1afdaaaa5a81fefeaa37c1a8542b14f9d324bae86ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In reporting reserve quantities and changes in them, oil and synthetic oil reserves and natural gas liquids reserves shall be stated in barrels, and gas and synthetic gas reserves in cubic feet. ##### [235-932-50-10](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:0d48cca4e0567afe1f67d395252b2720791a65046e5e577de6494e1206e83733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If important economic factors or significant uncertainties affect particular components of an entity's proved reserves, explanation shall be provided. Examples include unusually high expected development or lifting costs, the necessity to build a major pipeline or other major facilities before production of the reserves can begin, and contractual obligations to produce and sell a significant portion of reserves at prices that are substantially below those at which the oil or gas could otherwise be sold in the absence of the contractual obligation. ##### [235-932-50-11](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:80dd09187ad8b9faeb7090fe5bc8d1402bd73a664ebb5eaac57c0a586903d20f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity need not disclose the proved reserves in either of the following circumstances: 1. a The government of a country containing reserves prohibits disclosing reserves in that country. 2. b The government of a country containing reserves prohibits disclosing a particular field, and disclosing reserves in that country would have the effect of disclosing reserves in particular fields. ##### [235-932-50-11A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:c31bbf620037278dc9117eb020752506069a1211a01480412bd170331bc098d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a country's government prohibits disclosing the reserves in that country but does not prohibit including those reserves as part of a more aggregated total quantity of reserves (for example, the quantity of reserves disclosed for a group of countries within a continent or a continent), the entity shall include the reserves located in that country in total reserves disclosed for the most disaggregated geographic area that does not violate specific government prohibitions. ##### [235-932-50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-11B) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:45caba90e7e9626b2e3585fac5169d1a4ac6f699ec77b8591ae5be8f4a31da12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a government restricts the disclosure of estimated reserves for properties under its authority, or of amounts under long-term supply, purchase, or similar agreements or contracts, or if the government requires the disclosure of reserves other than proved, the entity shall indicate that the disclosed reserve estimates or amounts do not include figures for the named country or that reserve estimates include reserves other than proved. ##### [235-932-50-12](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:9d728553f3719da4f84eafe9cddb683904a9f9f5cb54f652c88e5bac3072a7fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2 (paragraph [932-235-55-3](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-3)) for an illustration of these requirements. ##### [235-932-50-13](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:b50c13cfc7c12226651a9f073bec737a2cc6379113768ec934a175c29086dd5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate capitalized costs relating to an entity's oil- and gas-producing activities (see paragraph [932-360-25-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-4)) and the aggregate related accumulated depreciation, depletion, amortization, and valuation allowances shall be disclosed as of the end of the year. Paragraph [360-10-50-1](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1) requires disclosure of balances of major classes of depreciable assets, by nature or function. Thus, separate disclosure of capitalized costs for asset categories in paragraph [932-360-25-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-4) or for a combination of those categories often may be appropriate. ##### [235-932-50-14](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:859d360db4906223dde706ab2b9dd624a845787121034eb038b365e16406dfd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, capitalized costs of [unproved properties](https://asc.understandingaccounting.org/glossary/u/#unproved-properties "Unproved properties are properties with no proved reserves.") shall be separately disclosed. Capitalized costs of [support equipment and facilities](https://asc.understandingaccounting.org/glossary/s/#support-equipment-and-facilities "Support equipment and facilities used in oil- and gas-producing activities, such as seismic equipment, drilling equipment, construction and grading equipment, vehicles, repair shops, warehouses, supply points, camps, and division, district, or field offices.") may be disclosed separately or included, as appropriate, with capitalized costs of proved and unproved properties. ##### [235-932-50-15](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:18200ea09ac5a4facb6be0ff1e1a997dfc73f72e2fcca53791db4758e460d44c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entity's financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the amounts required by paragraphs [932-235-50-13 through 50-14](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-13) for both of the following: 1. a Consolidated entities 2. b The entity's share of equity method investees. The entity shall not disclose the combined total of items (a) and (b). ##### [235-932-50-16](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:df5b5ac01ccac9bfc165c7c303ea47ba4b79aa3da5cf74341e8ef886df4ce6b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-03](https://asc.understandingaccounting.org/updates/asu-2010-03/). ##### [235-932-50-17](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:7debc7dc0e635f362938077681468f81e001161053e8890db61b473f1b845cbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 3 (paragraph [932-235-55-4](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-4)) for an illustration of these requirements. ##### [235-932-50-18](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:aaf1b019ca6567875c79390ba051dffa182a8782fdb3d0502c2d60749496b42d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following types of costs for the year shall be disclosed (whether those costs are capitalized or charged to expense at the time they are incurred under the provisions of paragraphs [932-360-25-7 through 25-14](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-7) , [932-360-40-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-40-2), and [932-720-25-1](https://asc.understandingaccounting.org/asc/720/932/#720-932-25-1)): 1. a Property acquisition costs 2. b Exploration costs 3. c Development costs. As defined in paragraphs [932-360-25-9](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-9) and [932-360-25-13](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-13), exploration and development costs include depreciation of support equipment and facilities used in those activities and do not include the expenditures to acquire support equipment and facilities. ##### [235-932-50-19](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:b8215d538254d5aa2ec5977bbb1100bae2f1c390efe92104a9401fc841e6c350 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts in the preceding paragraph shall be disclosed separately for each of the geographic areas for which reserve quantities are disclosed in accordance with paragraphs [932-235-50-6 through 50-6B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6). If significant costs have been incurred to acquire [mineral interests](https://asc.understandingaccounting.org/glossary/m/#mineral-interests "See Properties.") that have proved reserves, those costs shall be disclosed separately from the costs of acquiring unproved properties. ##### [235-932-50-20](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:3356eb10a915c9b6626441a8dede7b338c4841c1a60721b140b31db905e22ba7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entity's financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the amounts required by paragraphs [932-235-50-18 through 50-19](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-18) for both of the following: 1. a Consolidated entities 2. b The entity's share of equity method investees. The entity shall not disclose the combined total of items (a) and (b). ##### [235-932-50-21](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:1c6c9896d69a444712db0acf4d093f78d441a730508a70983f5772d71bea7102 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 4 (paragraph [932-235-55-5](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-5)) for an illustration of these requirements. ##### [235-932-50-22](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:03dbc528f6ac5e15971b0c82e232cf512ace081343481ce09390b39d5ab20b00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If oil- and gas-producing activities represent substantially all of the business activities of the reporting entity and those oil- and gas-producing activities are located substantially in a single geographic area, the information required in paragraphs [932-235-50-22 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-22) need not be disclosed if that information is provided elsewhere in the financial statements. If oil- and gas-producing activities constitute an operating segment, as discussed in paragraphs [280-10-50-1 through 50-18](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) , information about the results of operations required in paragraphs [932-235-50-22 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-22) may be included with segment information disclosed elsewhere in the financial report. ##### [235-932-50-23](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:52673a6ea8a3f48fb1e74911f8309cbb5607b8979dc6e8035fba22f864b330a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The results of operations for oil- and gas-producing activities shall be disclosed for the year. That information shall be disclosed in the aggregate and for each geographic area for which reserve quantities are disclosed in accordance with paragraphs [932-235-50-6 through 50-6B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-6). All of the following information relating to those activities shall be presented: 1. a Revenues (see the following paragraph) 2. b Production (lifting) costs 3. c Exploration expenses (Generally, only entities utilizing the successful efforts accounting method will have exploration expenses to disclose, since entities utilizing the full cost accounting method generally capitalize all exploration costs when incurred and subsequently reflect those costs in the determination of earnings through depreciation, depletion, and amortization, and valuation provisions.) 4. d Depreciation, depletion, and amortization, and valuation provisions 5. e Income tax expenses (see paragraph [932-235-50-25](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-25)) 6. f Results of operations for oil- and gas-producing activities (excluding corporate overhead and interest costs) (see paragraphs [932-235-50-26 through 50-27](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-26) ). ##### [235-932-50-24](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:9cbc6f51f63d6295c33dbc4ddf2d5cce80fa9a7a6d09502c7dcb44cf1aad039f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revenues shall include sales to unaffiliated entities and sales or transfers to the entity's other operations (for example, refineries or chemical plants). Sales to unaffiliated entities may be [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") within the scope of Topic 606; see disclosure requirements in Section 606-10-50. Sales to unaffiliated entities and sales or transfers to the entity's other operations shall be disclosed separately. Revenues shall include sales to unaffiliated entities attributable to net working interests, royalty interests, oil payment interests, and net profits interests of the reporting entity. Sales or transfers to the entity's other operations shall be based on market prices determined at the point of delivery from the producing unit. Those market prices shall represent prices equivalent to those that could be obtained in an arm's-length transaction. Production or severance taxes shall not be deducted in determining gross revenues, but rather shall be included as part of production costs. Royalty payments and net profits disbursements shall be excluded from gross revenues. ##### [235-932-50-25](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:ecbc1a315bc68035bdff0519ee84137bbe132276ae70b615c043ca7cc716dfe8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income taxes shall be computed using the statutory tax rate for the period, applied to revenues less production (lifting) costs; exploration expenses; depreciation, depletion, and amortization; and valuation provisions. Calculation of income tax expenses shall reflect tax deductions and tax credits and allowances relating to the oil- and gas-producing activities that are reflected in the entity's consolidated income tax expense for the period. ##### [235-932-50-26](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:c38aa56d9d576252b0ace9b46651a03c52096b6b835ba010892d03db983b4d55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Results of operations for oil- and gas-producing activities are defined as revenues less production (lifting) costs; exploration expenses; depreciation, depletion, and amortization; valuation provisions; and income tax expenses. General corporate overhead and interest costs shall not be deducted in computing the results of operations for an entity's oil- and gas-producing activities. The disposition of interest costs that have been capitalized as part of the cost of acquiring qualifying assets used in oil- and gas-producing activities shall be the same as that of other components of those assets' costs. However, some expenses incurred at an entity's central administrative office may not be general corporate expenses, but rather may be operating expenses of oil- and gas-producing activities, and therefore shall be reported as such. The nature of an expense rather than the location of its incurrence shall determine whether it is an operating expense. Only those expenses identified by their nature as operating expenses shall be allocated as operating expenses in computing the results of operations for oil- and gas-producing activities. ##### [235-932-50-27](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:0cd35d5449c6e3371a4fa9fbbf8f02389a2fa9e8831e361c835edc101350724f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts disclosed in conformity with paragraphs [932-235-50-21 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21) shall include an entity's interests in [proved oil and gas reserves](https://asc.understandingaccounting.org/glossary/p/#proved-oil-and-gas-reserves "Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time.The area of the reservoir considered as proved includes all of the following: The area identified by drilling and limited by fluid contacts, if any Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establish a lower contact with reasonable certainty.Where direct observation from well penetrations has defined a highest known oil elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.Reserves that can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when both of the following occur: Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based. The project has been approved for development by all necessary parties and entities, including governmental entities. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.") (see paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3)) and in oil and gas subject to purchase under long-term supply, purchase, or similar agreements and contracts in which the entity participates in the operation of the properties on which the oil or gas is located or otherwise serves as the producer of those reserves (see paragraph [932-235-50-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-7)). ##### [235-932-50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:1931a41adb120b31a8ccbce6c54f22a6449e06de6334bea84ced5a8bc231e6f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entity's financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the amounts required by paragraphs [932-235-50-22 through 50-27](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-22) for both of the following: 1. a Consolidated entities 2. b The entity's share of equity method investees. The entity shall not disclose the combined total of items (a) and (b), except that an entity may, in addition to separate disclosure, disclose the combined total of items (a) and (b) for the amounts required by paragraph [932-235-50-23(f)](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-23). ##### [235-932-50-29](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:30eceee569b1f8a5002ed699c6e9b6ca32bd310146920ac91ffe975744ed124e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 5 (paragraph [932-235-55-6](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-6)) for an illustration of these requirements. ##### [235-932-50-30](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:6a6f5e0efda9d43c97fab06be04d0e1f451da976dbe5088036671e404b0d8712 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A standardized measure of discounted future net cash flows relating to an entity's interests in both of the following shall be disclosed as of the end of the year: 1. a Proved oil and gas reserves (see paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3)) 2. b Oil and gas subject to purchase under long-term supply, purchase, or similar agreements and contracts in which the entity participates in the operation of the properties on which the oil or gas is located or otherwise serves as the producer of those reserves (see paragraph [932-235-50-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-7)). The standardized measure of discounted future net cash flows relating to those two types of interests in reserves may be combined for reporting purposes. ##### [235-932-50-31](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:7b50301cbc87e5d3d9c939d4aa4ea01ff3d57906fd2fcc677424c0e645c047c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following information shall be disclosed in the aggregate and for each geographic area for which reserve quantities are disclosed in accordance with paragraphs [932-235-50-3 through 50-11B](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-3): 1. a Future cash inflows. These shall be computed by applying prices used in estimating the entity's proved oil and gas reserves to the year-end quantities of those reserves. Future price changes shall be considered only to the extent provided by contractual arrangements in existence at year-end. 2. b Future development and production costs. These costs shall be computed by estimating the expenditures to be incurred in developing and producing the proved oil and gas reserves at the end of the year, based on year-end costs and assuming continuation of existing economic conditions. If estimated development expenditures are significant, they shall be presented separately from estimated production costs. 3. c Future income tax expenses. These expenses shall be computed by applying the appropriate year-end statutory tax rates, with consideration of future tax rates already legislated, to the future pretax net cash flows relating to the entity's proved oil and gas reserves, less the tax basis of the properties involved. The future income tax expenses shall give effect to tax deductions and tax credits and allowances relating to the entity's proved oil and gas reserves. 4. d Future net cash flows. These amounts are the result of subtracting future development and production costs and future income tax expenses from future cash inflows. 5. e Discount. This amount shall be derived from using a discount rate of 10 percent a year to reflect the timing of the future net cash flows relating to proved oil and gas reserves. 6. f Standardized measure of discounted future net cash flows. This amount is the future net cash flows less the computed discount. ##### [235-932-50-32](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:cb74fde68afcd586b77ed151cce3312195aa943d3e277a7be726dd5911a26d22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a significant portion of the economic interest in the consolidated standardized measure of discounted future net cash flows reported is attributable to a consolidated subsidiary or subsidiaries in which there is a significant noncontrolling interest, that fact and the approximate portion shall be disclosed. ##### [235-932-50-33](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:42f61cbaa182e6d0b861be4013fb2e9efe775cd96419b5ad233a7de13782fa77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the amounts required by paragraphs [932-235-50-30 through 50-32](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-30) for both of the following: 1. a Consolidated entities 2. b The entity's share of equity method investees. The entity may, in addition to separate disclosure, disclose a combined total for items (a) and (b) for each of the amounts required to be disclosed by this paragraph. ##### [235-932-50-34](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:3eff01b167c9f8437198fb3a485b483e834884b8922e3893fcd58aa3079384f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 6 (paragraph [932-235-55-7](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-7)) for an illustration of these requirements. ##### [235-932-50-35](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:81b5f616ef20d5108f923a394cb9bcbea898a9444fd3cd328fb26849dc186e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate change in the standardized measure of discounted future net cash flows shall be disclosed for the year. If individually significant, all of the following sources of change shall be presented separately: 1. a Net change in sales and transfer prices and in production (lifting) costs related to future production 2. b Changes in estimated future development costs 3. c Sales and transfers of oil and gas produced during the period 4. d Net change due to extensions, discoveries, and improved recovery 5. e Net change due to purchases and sales of minerals in place 6. f Net change due to revisions in quantity estimates 7. g Previously estimated development costs incurred during the period 8. h Accretion of discount 9. i Other—unspecified 10. j Net change in income taxes. In computing the amounts under each of the above categories, the effects of changes in prices and costs shall be computed before the effects of changes in quantities. As a result, changes in quantities shall be stated at prices used in estimating proved oil and gas reserves and year-end costs. The change in computed income taxes shall reflect the effect of income taxes incurred during the period as well as the change in future income tax expenses. Therefore, all changes except income taxes shall be reported pretax. ##### [235-932-50-35A](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-35A) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:3df9ae1c7bad5920292d54bffdb4efdb775d122bbdc632318e7ca9ae134a6846 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the financial statements include investments that are accounted for by the equity method, the entity shall separately disclose the amounts required by the preceding paragraph for both of the following: 1. a Consolidated entities 2. b The entity's share of equity method investees. The entity may, in addition to separate disclosure, disclose a combined total for items (a) and (b) for each of the amounts required to be disclosed by this paragraph. ##### [235-932-50-36](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:35.317Z to 2026-09-09T23:15:35.317Z Record version: sha256:9f53d0cfe279ec3aa6e9b1db04c538c6bfdf94c07a200c648082d3097f861060 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additional information necessary to prevent the disclosure of the standardized measure of discounted future net cash flows and changes therein from being misleading also shall be provided. Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:c624144d944bf4ee77e0d6cdfdf4c6603addd2dd6f22a816e6f5d309cf4e4e70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:fcff2597e91f17e6ee71be8674bae51c10c7fb3589fb13f2ec005ed1248600e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:78dacd56302fd5ead192c2237e5b76e457f0568463a820ca32f8db1e4fb0532b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:24b61a16bb9635cf7b1e9dc759bb086ed74fd55a049f6383f648de09c45fa4f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:069efda592c09d8d3f0dcc43fdf1eb9016dadce1b265a7ee548785aaf6dd7a30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:29ae19590522132be4f7e75adb74fe4cf3091ba4894a5a34b4d8e4bb94fbdb13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:c541e68b1141435d450861c962ebf7291292e9627922458df9dca27c4772b999 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:37.040Z to 2026-09-09T23:15:37.040Z Record version: sha256:5a5f0e5d338bb3f439399f607bac0dc707a5275c1a0f7ace3af754030a32ccc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)." Source downloaded (UTC): 2026-09-09T23:15:42.306Z to 2026-09-09T23:15:42.306Z Record version: sha256:f66ec296aeb40e74c0ff7ac353af9af7be9a147dbbe6f702ed35902cd40bc889 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/235/932/#sec-00-status) SEC content: yes ##### [235-932-S00-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:42.306Z to 2026-09-09T23:15:42.306Z Record version: sha256:cf1fc5ae2b1cc3c2f361b92294f9afa675c708017e9b9e15bf597962b5ff4a71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
932-235-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-09T23:15:46.239Z to 2026-09-09T23:15:46.239Z Record version: sha256:68ebbf2d97b9d7fe7b3e2cccfb49b4c3592f9870e927e6e878e4498cb13e2a8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-932-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/235/932/#sec-50-disclosure) SEC content: yes #### Disclosures Related to Oil- and Gas-Producing Activities ##### [235-932-S50-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:46.239Z to 2026-09-09T23:15:46.239Z Record version: sha256:3225c5efe2b7635dca2cec18eb04d1c05c2046f1f75fa5442a5f2d3a1a5a28cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [932-235-S99-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S99-1), SAB Topic 12.A.3.c, for SEC Staff views on disclosures related to oil- and gas-producing activities to be provided by limited partnerships in Form 10-K. ##### [235-932-S50-2](https://asc.understandingaccounting.org/asc/235/932/#235-932-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:46.239Z to 2026-09-09T23:15:46.239Z Record version: sha256:43da4d437db102e41a56d2aae45dcdeb01bdb29fdd02d003dfe550d0742390aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [932-235-S99-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S99-1), SAB Topic 12.A.3.d, for SEC Staff views on disclosures related to the general partner in the registration statement of the limited partnership. ##### [235-932-S50-3](https://asc.understandingaccounting.org/asc/235/932/#235-932-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:15:46.239Z to 2026-09-09T23:15:46.239Z Record version: sha256:d82922bf4d3196c798cb27a0c1258faf4600fb12595283b6089850b46ccc67bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [932-235-S99-1](https://asc.understandingaccounting.org/asc/235/932/#235-932-S99-1), SAB Topic 12.A.3.e, for SEC Staff views on disclosures for rate-regulated entities. 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.