# ASC 360-932-25: Property, Plant, and Equipment — Extractive Activities—Oil and Gas — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/932/#25-recognition) 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): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:15d405219cc77a078577bcf57fe4d2ff3422a253ef2315e8a8794fa2cd571dcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-932-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/932/#25-recognition) SEC content: no #### Full Cost ##### [360-932-25-1](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:c08049515518255c41204be8e0bc86cf3cebe8aff000c29a0c81396896725157 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Full cost accounting is addressed in the Securities and Exchange Commission (SEC) literature. #### Successful Efforts ##### [360-932-25-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:5dff712af8dd2ff28adb7f308af3bef110fb397d6d54c17c38e47b048d5e0111 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic deals with accounting under a successful efforts method. ##### [360-932-25-3](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:3aa6ea6671e890f15d6f09775376254b01b7da8c1a24e458fbe06c088626f09c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Only those [exploration costs](https://asc.understandingaccounting.org/glossary/e/#exploration-costs "See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(a)(12), for the definition of exploration costs as used within that Rule.") and development costs that relate directly to specific oil and gas reserves are capitalized; costs that do not relate directly to specific reserves are charged to expense. The successful efforts method of accounting conforms to the traditional concept of the historical cost of an asset. Under the successful efforts method, certain types of costs may be capitalized as construction-in-progress pending further information about the existence of future benefits, but as soon as the additional information becomes available, and it is known whether future benefits exist, those costs are either reclassified as an amortizable asset or charged to expense. ##### [360-932-25-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:3ed59863adfbfb214e6d232fda461010d05146e09727a2fdd26c479db3c246e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity's oil- and gas-producing activities involve certain special types of assets. Costs of those assets shall be capitalized when incurred. Those assets broadly defined are: mineral interests in properties, sometimes called [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."); [wells and related equipment and facilities](https://asc.understandingaccounting.org/glossary/w/#wells-and-related-equipment-and-facilities "Wells and related equipment and facilities are often referred to in the oil and gas industry as lease and well equipment even though, technically, the property may have been acquired other than by a lease. The costs include those incurred to: Drill and equip those exploratory wells and exploratory-type stratigraphic test wells that have found proved reserves Obtain access to proved reserves and provide facilities for extracting, treating, gathering, and storing the oil and gas, including the drilling and equipping of development wells and development-type stratigraphic test wells (whether those wells are successful or unsuccessful) and service wells."); [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."); and [uncompleted wells, equipment, and facilities](https://asc.understandingaccounting.org/glossary/u/#uncompleted-wells-equipment-and-facilities "Uncompleted wells, equipment, and facilities, the costs of which include those incurred to: Drill and equip wells that are not yet completed Acquire or construct equipment and facilities that are not yet completed and installed."). #### Accounting at the Time Costs Are Incurred ##### [360-932-25-5](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:ca9d423b26c84fd56ea42847c26be0042c43eed1adb9c628de5e7fc24ee644db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the oil and gas industry, ultimately the expected future benefits that an entity is attempting to obtain through its acquisition, exploration, and development activities are represented by oil and gas reserves. But other than by purchasing minerals-in-place, an entity does not acquire reserves directly. Rather, it acquires properties (rights to extract any reserves that may be discovered in the future) and it acquires (develops) systems capable of producing the oil and gas reserves that are discovered. ##### [360-932-25-6](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:b08d099254b1fab98650f0abe40220c0c8a918dd2e9168ba8c78705a416dd767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of paragraphs [932-360-25-7 through 25-16](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-7) , which deal with accounting at the time costs are incurred, is to recognize as assets all of the following: 1. a [Unproved properties](https://asc.understandingaccounting.org/glossary/u/#unproved-properties "Unproved properties are properties with no proved reserves.") 2. b [Proved properties](https://asc.understandingaccounting.org/glossary/p/#proved-properties "Proved properties are properties with proved reserves.") 3. c Wells and related equipment and facilities (which consist of all development costs plus the costs of drilling those [exploratory wells](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.") and exploratory-type stratigraphic test wells that find proved reserves) 4. d Support equipment and facilities used in oil- and gas-producing activities 5. e Uncompleted wells, equipment, and facilities. ##### [360-932-25-7](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:3c5b2d855190d5b6753c113642769470d7e892fdd7cffe5651be46e6324d90c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred to purchase, lease, or otherwise acquire a property (whether unproved or proved) shall be capitalized when incurred. They include all of the following: 1. a The costs of lease bonuses and options to purchase or lease properties 2. b The portion of costs applicable to minerals when land including mineral rights is purchased in fee 3. c Brokers' fees 4. d Recording fees 5. e Legal costs 6. f Other costs incurred in acquiring properties. ##### [360-932-25-8](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:24cce4b61f9098f783177f91fe6678b3016864e929ecad274635a29d55467689 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property. ##### [360-932-25-9](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:a011412dc45e60f348ea341c1bfb8ff73d781a047fa1405fb223f40c2ecd4350 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are principal types of exploration costs, which include depreciation and applicable operating costs of support equipment and facilities (see paragraph [932-360-25-16](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-16)) and other costs of exploration activities: 1. a Costs of topographical, geological, and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, those are sometimes referred to as geological and geophysical costs. 2. b Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on the properties, legal costs for title defense, and the maintenance of land and lease records. 3. c Dry hole contributions and bottom hole contributions. 4. d Costs of drilling and equipping exploratory wells. 5. e Costs of drilling exploratory-type [stratigraphic test wells](https://asc.understandingaccounting.org/glossary/s/#stratigraphic-test-well "A stratigraphic test is a drilling effort, geologically directed, to obtain information pertaining to a specific geologic condition. Such wells customarily are drilled without the intention of being completed for hydrocarbon production. This classification also includes tests identified as core tests and all types of expendable holes related to hydrocarbon exploration. Stratigraphic tests are classified as exploratory-type if not drilled in a proved area or development-type if drilled in a proved area."). While the costs of drilling stratigraphic test wells are sometimes considered to be geological and geophysical costs, they are accounted for separately under this Subtopic for reasons explained in paragraphs [932-360-25-17 through 25-18](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-17) . ##### [360-932-25-10](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:26388657ef27ee20b2a64dc07850db841cbe09f6c2736374da1426696d49f17a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs of drilling exploratory wells and the costs of drilling exploratory-type stratigraphic test wells shall be capitalized as part of the entity's uncompleted wells, equipment, and facilities pending determination of whether the well has found proved reserves. ##### [360-932-25-11](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:989b3c636cfb56e6b9c1e9eb2be55348bf7df2fe3ae65027b04e29b6fd762c13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity sometimes conducts geological and geophysical studies and other exploration activities on a property owned by another party, in exchange for which the entity is contractually entitled to receive an interest in the property if proved reserves are found or to be reimbursed by the owner for the geological and geophysical and other costs incurred if proved reserves are not found. In that case, the entity conducting the geological and geophysical studies and other exploration activities shall account for those costs as a receivable when incurred and, if proved reserves are found, they shall become the cost of the proved property acquired. ##### [360-932-25-12](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:42766092f00007ea41f061dafea3b64f004604bdc76121f14afcc93a3f403e8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Development costs are incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering, and storing the oil and gas. ##### [360-932-25-13](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:114d5ef0953836d73a290c1519a534605fae7fa7599c4810ce677e38631a524d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. More specifically, development costs, including depreciation and applicable operating costs of support equipment and facilities (see paragraph [932-360-25-16](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-16)) and other costs of development activities, are costs incurred to: 1. a Gain access to and prepare well locations for drilling, including all of the following: 1. 1 Surveying well locations for the purpose of determining specific development drilling sites 2. 2 Clearing ground 3. 3 Draining 4. 4 Road building 5. 5 Relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves. 2. b Drill and equip [development wells](https://asc.understandingaccounting.org/glossary/d/#development-well "A development well is a well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive."), development-type stratigraphic test wells, and [service wells](https://asc.understandingaccounting.org/glossary/s/#service-well "A service well is a well drilled or completed for the purpose of supporting production in an existing field. Wells in this class are drilled for the following specific purposes: gas injection (natural gas, propane, butane, or flue gas), water injection, steam injection, air injection, salt-water disposal, water supply for injection, observation, or injection for in-situ combustion."), including the costs of platforms and of well equipment such as: 1. 1 The wellhead assembly 2. 2 Pumping equipment 3. 3 Tubing 4. 4 Casing. 3. c Acquire, construct, and install production facilities such as: 1. 1 Lease flow lines 2. 2 Separators 3. 3 Treaters 4. 4 Heaters 5. 5 Manifolds 6. 6 Measuring devices 7. 7 Production storage tanks 8. 8 Natural gas cycling and processing plants 9. 9 Utility and waste disposal systems. 4. d Provide improved recovery systems. ##### [360-932-25-14](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:fe86c1b691d530b3422196a985e5f5c6c20a5f8354c8aa075a97282f5d8b996c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Development costs shall be capitalized as part of the cost of an entity's wells and related equipment and facilities. Thus, all costs incurred to drill and equip development wells, development-type stratigraphic test wells, and service wells are development costs and shall be capitalized, whether the well is successful or unsuccessful. Costs of drilling those wells and costs of constructing equipment and facilities shall be included in the entity's uncompleted wells, equipment, and facilities until drilling or construction is completed. ##### [360-932-25-15](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:2542a593555e7d7188bded5584851ad168e32b87d6c039a1b26f40985dea9a14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") costs are those costs incurred to operate and maintain an entity's wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities (see the following paragraph) and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced. Examples of production costs (sometimes called lifting costs) are: 1. a Costs of labor to operate the wells and related equipment and facilities 2. b Repairs and maintenance 3. c Materials, supplies, and fuel consumed and services utilized in operating the wells and related equipment and facilities 4. d Property taxes and insurance applicable to proved properties and wells and related equipment and facilities 5. e Severance taxes. Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs also become part of the cost of oil and gas produced along with production (lifting) costs identified in this paragraph. ##### [360-932-25-16](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:9def03bb14cce2916f8113255c1fe0e2c7c5c33c578a6052d37e0a24d0eda63d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cost of acquiring or constructing support equipment and facilities used in oil- and gas-producing activities shall be capitalized. Examples of support equipment and facilities include: 1. a Seismic equipment 2. b Drilling equipment 3. c Construction and grading equipment 4. d Vehicles 5. e Repair shops 6. f Warehouses 7. g Supply points 8. h Camps 9. i Division, district, or field offices. Some support equipment or facilities are acquired or constructed for use exclusively in a single activity—exploration, development, or production. Other support equipment or facilities may serve two or more of those activities and may also serve the entity's transportation, refining, and marketing activities. To the extent that the support equipment and facilities are used in oil- and gas-producing activities, their depreciation and applicable operating costs become an exploration, development, or production cost, as appropriate. #### Stratigraphic Test Wells ##### [360-932-25-17](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:0c3427ed6252eca245e33062ad222dda3e07669ef6b048c372c881694b2f7c83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Stratigraphic test wells are drilled to obtain information. They are not normally intended to be completed for hydrocarbon production and are customarily abandoned after drilling is completed and the information is obtained. Normally, stratigraphic test wells are drilled offshore to determine whether an offshore property contains sufficient reserves to justify the cost of constructing and installing a production platform and to determine where to locate such a platform. ##### [360-932-25-18](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:ab5921b3708ce52c64714a49727761b233ad2ab4a9de387e897d8d5df31b8cd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Stratigraphic test wells are divided into two types—exploratory-type and development-type—and the standards of accounting for the two types parallel the accounting for exploratory wells and development wells, respectively. Thus, an exploratory-type [stratigraphic test well](https://asc.understandingaccounting.org/glossary/s/#stratigraphic-test-well "A stratigraphic test is a drilling effort, geologically directed, to obtain information pertaining to a specific geologic condition. Such wells customarily are drilled without the intention of being completed for hydrocarbon production. This classification also includes tests identified as core tests and all types of expendable holes related to hydrocarbon exploration. Stratigraphic tests are classified as exploratory-type if not drilled in a proved area or development-type if drilled in a proved area.") is accounted for in a manner similar to an [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.") drilled in an area requiring a major capital expenditure before production could begin (see paragraph [932-360-25-10](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-10)). The costs of drilling the exploratory-type stratigraphic test well are capitalized pending determination of whether proved reserves are found, subject to the condition that those costs shall not continue to be carried as assets if the entity is not making sufficient progress assessing the reserves and the economic and operating viability of the project or if the quantity of reserves found would not justify completion of the well for production had it not been simply a stratigraphic test well. Thus if an exploratory-type stratigraphic test well discovers reserves that are classified as proved and facilities are to be installed to produce those reserves, the cost of the exploratory-type stratigraphic test well is accounted for as part of the cost of the facilities even though the particular well itself may be abandoned. Accounting for the other type of stratigraphic test well—development-type—is identical to accounting for development wells and other development costs generally: capitalize as part of the cost of an entity's wells and related equipment and facilities (as discussed in paragraph [932-360-25-14](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-14)). #### Links to Other Relevant Topics ##### [360-932-25-19](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:4a042f54469c9aad1e33e956b46885204dd41c11b7f33ee94dbac8243d0b7eac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Land that is not undergoing developmental activities necessary to get it ready for its intended use is not an asset qualifying for interest capitalization. See paragraph [835-20-15-8](https://asc.understandingaccounting.org/asc/835/20/#835-20-15-8) for the criteria and methods for capitalizing interest costs. ##### [360-932-25-20](https://asc.understandingaccounting.org/asc/360/932/#360-932-25-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:08:59.239Z to 2026-09-10T00:08:59.239Z Record version: sha256:7bbe05ee3b827b2bb445cd8ae598f673471a3ba750a7a55c8329d3f71ad8bc56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 255-10-50 for methods of determining discounted future net cash flows relating to proved oil and gas reserve quantities.