{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/360/932/#sec-25-recognition","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.","topic":"360","topic_title":"Property, Plant, and Equipment","subtopic":"360-932","subtopic_title":"Extractive Activities—Oil and Gas","section":{"number":"S25","label":"SEC 25 Recognition","anchor":"sec-25-recognition","is_sec":true,"groups":[{"block":null,"heading":"Successful Efforts Method","paragraphs":[{"citation":"360-932-S25-1","para":"S25-1","html":"See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(b), for the requirements of an entity that follows the successful efforts method, including smaller reporting companies. See the following rules within paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c), for the application of the full cost method of accounting, including smaller reporting companies. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(1), for how to determine cost centers for purposes of the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(2), for discussion of which costs are required to be capitalized under the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(5), for the required accounting for production costs under the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(6)(i), for the required accounting for sales and abandonments of oil and gas properties under the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(6)(ii), for the required accounting for purchases of oil and gas reserves in place under the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(6)(iii), for the required accounting for partnerships, joint venture operations, and other drilling arrangements under the full cost method. See paragraph 932-10-S99-1, Regulation S-X Rule 4-10(c)(6)(iv), for the a discussion of when income can be recognized in connection with contractual services performed under the full cost method.