ASC

ASC 350-932

Extractive Activities—Oil and Gas

350 Intangibles—Goodwill and Other

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In brief

IntermediateDisclosureIntangibles and goodwillIndustry-specificPresentation

This Subtopic carves oil- and gas-producing entities out of the general intangible asset balance sheet classification and disclosure rules for their drilling and mineral rights. Because the oil and gas accounting framework turns on the level of established reserves rather than on whether an asset is tangible or intangible, the scope exception in 350-10-15-4(b) extends to the disclosure provisions, with disclosure instead governed by Section 932-235-50. Entities may voluntarily provide additional information about drilling and mineral rights but may not analogize this exception to other items in 350-10-15-4.

Key points (6)
  • This Subtopic creates an oil and gas industry exception to the general intangible asset disclosure rules (350-932-05-1).
  • The scope exception in paragraph 350-10-15-4(b) covers both balance sheet classification and disclosures for drilling and mineral rights of oil- and gas-producing entities within the scope of Topic 932 (350-932-50-1).
  • The rationale is that the oil and gas accounting framework is based on the level of established reserves, not on whether an asset is tangible or intangible (350-932-50-1).
  • Required disclosures for these rights come from Section 932-235-50, though an entity is not precluded from providing additional information about its drilling and mineral rights (350-932-50-1).
  • Entities must not analogize this guidance to the other items listed in paragraph 350-10-15-4 (350-932-50-2).
  • Scope follows the Overall Subtopic scope in Section 932-10-15 (350-932-15-1).

For students. Exam trap: students assume mineral and drilling rights are "intangible assets" subject to ASC 350's classification and disclosure rules—for oil and gas producers they are not; look to ASC 932-235-50 instead. Equally important, the exception is narrow and cannot be analogized to other 350-10-15-4 items.

drilling and mineral rightsoil- and gas-producing entitiesscope exceptionintangible asset disclosuresestablished reservesbalance sheet classificationprohibition on analogy

Machine-generated study aid for ASC 350-932. Check the source paragraphs below.

350-932-05Overview and Background

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350-932-05-1
This Subtopic addresses an exception for the oil and gas industry to the disclosure rules for intangible assets.

350-932-15Scope and Scope Exceptions

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Overall Guidance

350-932-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15.

350-932-50Disclosure

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350-932-50-1
The scope exception in paragraph 350-10-15-4(b) includes the balance sheet classification and disclosures for drilling and mineral rights of oil- and gas-producing entities that are within the scope of this Topic. The accounting framework for oil- and gas-producing entities is based on the level of established reserves—not whether an asset is tangible or intangible. Accordingly, the scope exception extends to its disclosure provisions for drilling and mineral rights of oil- and gas-producing entities. However, an entity is not precluded from providing information about its drilling and mineral rights in addition to the information required by Section 932-235-50.
350-932-50-2
Entities should not analogize this guidance to other items listed in paragraph 350-10-15-4.

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