# ASC 330-932: Inventory — Extractive Activities—Oil and Gas Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/330/932/) 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): 2026-09-09T23:53:09.584Z to 2026-09-09T23:53:22.955Z Record version: sha256:89d4a9bc4287327809b47666c8a2715632b79cbf1cfc5ceb028f40cb0284463e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-932: Inventory — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-09T23:53:09.584Z to 2026-09-09T23:53:09.584Z Record version: sha256:903befeb8673be97709a1b07b2c2074fb78aa8030aba4027f39a8dd622e00fbc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-932-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/330/932/#00-status) SEC content: no ##### [330-932-00-1](https://asc.understandingaccounting.org/asc/330/932/#330-932-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:53:09.584Z to 2026-09-09T23:53:09.584Z Record version: sha256:8a867962c533363ca0f738e762617486d2e6b11245671f3aef8d51b5f96338e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.

Paragraph	Action	Accounting Standards Update	Date

932-330-35-1	Amended	Accounting Standards Update No. 2016-19	12/14/2016
932-330-35-1	Amended	Accounting Standards Update No. 2012-04	10/01/2012

Source downloaded (UTC): 2026-09-09T23:53:12.697Z to 2026-09-09T23:53:12.697Z Record version: sha256:b3bbac48ba1261de608be9abfac483bd43519b6fe0ab50f8a3f37090b0e1527b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/330/932/#05-overview-and-background) SEC content: no ##### [330-932-05-1](https://asc.understandingaccounting.org/asc/330/932/#330-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:53:12.697Z to 2026-09-09T23:53:12.697Z Record version: sha256:c89252ba6f12f077c8d1a5c2a97f2b851fd116e8c2245f59bc7acbd6e873319f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for inventory in the oil and gas industry. Source downloaded (UTC): 2026-09-09T23:53:16.760Z to 2026-09-09T23:53:16.760Z Record version: sha256:84e98371588a13d716895bf59d910caf1633471131861c87880ad5356493618a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/330/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [330-932-15-1](https://asc.understandingaccounting.org/asc/330/932/#330-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:53:16.760Z to 2026-09-09T23:53:16.760Z Record version: sha256:b6f848b7880f6153c19368f3a77ee1c60d514d46b6a645da30dfdfa86a6dae47 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): 2026-09-09T23:53:19.048Z to 2026-09-09T23:53:19.048Z Record version: sha256:8119dee9f77d3c62f365475a994719d92ffa4f3e6df20ebd6290d8de277ee90b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 330-932-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/330/932/#35-subsequent-measurement) SEC content: no ##### [330-932-35-1](https://asc.understandingaccounting.org/asc/330/932/#330-932-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:53:19.048Z to 2026-09-09T23:53:19.048Z Record version: sha256:a9b17d593c83322638970c85cc2707f122658bdd810120001ea4db0bc35c5290 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 physical inventories at fair value, except as provided by guidance in other Topics. #### Exchanges of Inventory ##### [330-932-35-2](https://asc.understandingaccounting.org/asc/330/932/#330-932-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:53:19.048Z to 2026-09-09T23:53:19.048Z Record version: sha256:a617c453c7aea8516a5585ae602e4f501a76d723bd459c00c224ef9724fbc42c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For exchanges of inventories, the buying and selling of inventory with the same counterparty, see paragraphs [845-10-15-5 through 15-9](https://asc.understandingaccounting.org/asc/845/10/#845-10-15-5) .