# ASC 360-932-S25: Property, Plant, and Equipment — Extractive Activities—Oil and Gas — SEC 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/360/932/#sec-25-recognition)

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## ASC 360-932-S25: SEC 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/360/932/#sec-25-recognition)

SEC content: yes

#### Successful Efforts Method

##### [360-932-S25-1](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-1)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

#### Full Cost Method

##### [360-932-S25-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-2)

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See the following rules within paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-3](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-3)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-4)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-5](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-5)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#932-10-S99-1), Regulation S-X Rule 4-10(c)(5), for the required accounting for production costs under the full cost method.

##### [360-932-S25-6](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-6)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-7](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-7)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-8](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-8)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.

##### [360-932-S25-9](https://asc.understandingaccounting.org/asc/360/932/#360-932-S25-9)

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See paragraph [932-10-S99-1](https://asc.understandingaccounting.org/asc/932/10/#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.