{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/330/932/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"330-932","topic":"330","title":"Extractive Activities—Oil and Gas","area":"Assets","paragraphs":5,"summary":"This Subtopic governs inventory accounting for entities in the oil and gas (extractive activities) industry, borrowing the scope of ASC 932-10-15. Its core rules are prohibitions: energy trading contracts that are not derivatives under Topic 815 may not be subsequently measured at fair value through earnings, and physical inventories may not be measured at fair value unless another Topic permits it. 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class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/330/932/#330-932-35-1\" class=\"xref\">932-330-35-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/330/932/#330-932-35-1\" class=\"xref\">932-330-35-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a></td><td class=\"entry\">10/01/2012</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n932-330-35-1 | Amended | Accounting Standards Update No. 2016-19 | 12/14/2016 |\n932-330-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a867962c533363ca0f738e762617486d2e6b11245671f3aef8d51b5f96338e2","downloaded_from":"2026-09-09T23:53:09.584Z","last_downloaded_at":"2026-09-09T23:53:09.584Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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in the oil and gas industry.</div></div>","snippet":"This Subtopic addresses accounting for inventory in the oil and gas industry.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c89252ba6f12f077c8d1a5c2a97f2b851fd116e8c2245f59bc7acbd6e873319f","downloaded_from":"2026-09-09T23:53:12.697Z","last_downloaded_at":"2026-09-09T23:53:12.697Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-DBC21369-4585-4B41-8260-206E58C04720.ditamap\" class=\"ditamap\">932-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6f848b7880f6153c19368f3a77ee1c60d514d46b6a645da30dfdfa86a6dae47","downloaded_from":"2026-09-09T23:53:16.760Z","last_downloaded_at":"2026-09-09T23:53:16.760Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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id=\"sfr_E95E6005-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Energy trading contracts that are not accounted for as derivatives in accordance with Topic <a altsource=\"GUID-128369CC-8E3A-4A7E-8F25-33E42B0761E4.ditamap\" class=\"ditamap\">815</a> on derivatives and hedging shall not be measured subsequently at fair value through earnings. </span></span> <span class=\"sfragment\" id=\"sfr_E95E60FE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Entities shall not measure physical inventories at fair value, except as provided by guidance in other Topics. </span></span> </div> </div>","snippet":"Energy trading contracts that are not accounted for as derivatives in accordance with Topic 815 on derivatives and hedging shall not be measured subsequently at fair value through earnings. Entities shall not measure phy…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9b17d593c83322638970c85cc2707f122658bdd810120001ea4db0bc35c5290","downloaded_from":"2026-09-09T23:53:19.048Z","last_downloaded_at":"2026-09-09T23:53:19.048Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478147","source_sha256":"83f83ecb8296b440356c9d03a8e689f59cb2dee3ac6d50bd02c9f295a7cce6a1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5046b53f104bf3ed08b8b750656f326ceb5dba9c7c961ec1b8473425277dfbe6","downloaded_from":"2026-09-09T23:53:19.048Z","last_downloaded_at":"2026-09-09T23:53:19.048Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478147","source_sha256":"83f83ecb8296b440356c9d03a8e689f59cb2dee3ac6d50bd02c9f295a7cce6a1"}},{"block":null,"heading":"Exchanges of Inventory","paragraphs":[{"citation":"330-932-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">For exchanges of inventories, the buying and selling of inventory with the same counterparty, see paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/845/10/#845-10-15-5\" class=\"xref\">845-10-15-5 through 15-9</a></div>.</div> </div>","snippet":"For exchanges of inventories, the buying and selling of inventory with the same counterparty, see paragraphs 845-10-15-5 through 15-9.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a617c453c7aea8516a5585ae602e4f501a76d723bd459c00c224ef9724fbc42c","downloaded_from":"2026-09-09T23:53:19.048Z","last_downloaded_at":"2026-09-09T23:53:19.048Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478147","source_sha256":"83f83ecb8296b440356c9d03a8e689f59cb2dee3ac6d50bd02c9f295a7cce6a1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ebae00b16c5bfa17d28972ebf5ede3acb5a861c5978e86198b1996b73608f98c","downloaded_from":"2026-09-09T23:53:19.048Z","last_downloaded_at":"2026-09-09T23:53:19.048Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478147","source_sha256":"83f83ecb8296b440356c9d03a8e689f59cb2dee3ac6d50bd02c9f295a7cce6a1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8119dee9f77d3c62f365475a994719d92ffa4f3e6df20ebd6290d8de277ee90b","downloaded_from":"2026-09-09T23:53:19.048Z","last_downloaded_at":"2026-09-09T23:53:19.048Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478147","source_sha256":"83f83ecb8296b440356c9d03a8e689f59cb2dee3ac6d50bd02c9f295a7cce6a1"}}],"enrichment":{"summary":"This Subtopic governs inventory accounting for entities in the oil and gas (extractive activities) industry, borrowing the scope of ASC 932-10-15. Its core rules are prohibitions: energy trading contracts that are not derivatives under Topic 815 may not be subsequently measured at fair value through earnings, and physical inventories may not be measured at fair value unless another Topic permits it. Exchanges (buying and selling inventory with the same counterparty) are directed to ASC 845-10-15-5 through 15-9.","key_points":["The Subtopic addresses accounting for inventory in the oil and gas industry (330-932-05-1) and adopts the scope of Section 932-10-15 (330-932-15-1).","Energy trading contracts that do not qualify as derivatives under Topic 815 shall not be subsequently measured at fair value through earnings (330-932-35-1).","Entities shall not measure physical inventories at fair value except as provided by guidance in other Topics (330-932-35-1).","For inventory exchanges — buying and selling inventory with the same counterparty — apply paragraphs 845-10-15-5 through 15-9 (330-932-35-2)."],"categories":["Subsequent measurement","Industry-specific","Inventory and PP&E","Fair value"],"audience_level":"intermediate","student_note":"The takeaway is that oil and gas companies cannot mark physical inventories or non-derivative energy trading contracts to market through earnings — a rule that reversed earlier trading-book practice. Students often wrongly assume commodity inventories in energy are always fair-valued; fair value applies only where another Topic (e.g., 815 for true derivatives) allows it.","related_topics":["932-10","815","845-10","330-10","932-360"],"key_concepts":["energy trading contracts","physical inventory","fair value measurement prohibition","inventory exchanges with same counterparty","oil and gas extractive activities","nonmonetary transactions"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:17c6b06cf98212931a9a2df9a3d03a72d6f24ac36c1959ba14149da8b779f00e","downloaded_from":"2026-09-09T23:53:09.584Z","last_downloaded_at":"2026-09-09T23:53:22.955Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"350-932","title":"Extractive Activities—Oil and Gas","topic_title":"Intangibles—Goodwill and Other","score":0.7344,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3cbb560de99d7cbd782ec693c5e88e1d96bc1813fa9b949e8cc35bf9384bd04","downloaded_from":"2026-09-10T00:04:39.480Z","last_downloaded_at":"2026-09-10T00:04:44.333Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-932","title":"Extractive Activities—Oil and Gas","topic_title":"Interest","score":0.719,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a272aecebffc6550e2734aca8147e2c72b0316168cc7becb7311ec3eac66f00c","downloaded_from":"2026-09-10T01:50:54.044Z","last_downloaded_at":"2026-09-10T01:51:06.744Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-932","title":"Extractive Activities—Oil and Gas","topic_title":"Other Expenses","score":0.7173,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70939029b698b900d8752a9169cd0326567cad5859d8066e0b236bdeec0c8c27","downloaded_from":"2026-09-10T01:10:32.559Z","last_downloaded_at":"2026-09-10T01:10:47.285Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"330-930","title":"Extractive Activities—Mining","topic_title":"Inventory","score":0.7067,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31ff1fd611d8bab3e7d27bb53c5f957c3881c7fa1daf48adf92ead3fab25a6c8","downloaded_from":"2026-09-09T23:52:57.013Z","last_downloaded_at":"2026-09-09T23:53:06.919Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"470-932","title":"Extractive Activities—Oil and Gas","topic_title":"Debt","score":0.7045,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:691f716cca0164bd1c1d66b2b27ba873703bb3578bc669e2ff71e2211f274779","downloaded_from":"2026-09-10T00:33:36.319Z","last_downloaded_at":"2026-09-10T00:33:48.351Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-932","title":"Extractive Activities—Oil and Gas","topic_title":"Consolidation","score":0.7038,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3552d76fe112952bf93c090267f45a566934c91c4122342acfbc820648cd3d5","downloaded_from":"2026-09-10T01:31:06.373Z","last_downloaded_at":"2026-09-10T01:31:16.096Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"330-930","title":"Extractive 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