# ASC 360-932-S55: Property, Plant, and Equipment — Extractive Activities—Oil and Gas — SEC 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/360/932/#sec-55-implementation-guidance-and-illustrations)

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## ASC 360-932-S55: SEC 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/360/932/#sec-55-implementation-guidance-and-illustrations)

SEC content: yes

#### Proved Reserves

##### [360-932-S55-1](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-1)

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See paragraph [932-360-S99-1](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-1), SAB Topic 12.A.1, for SEC Staff views on estimating quantities of proved reserves.

##### [360-932-S55-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-2)

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See paragraph [932-360-S99-1](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-1), SAB Topic 12.A.2, for SEC Staff views on estimating future net revenues for the purposes of determining proved reserves.

##### [360-932-S55-3](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-3)

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See paragraph [932-360-S99-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-4), SAB Topic 12.G, for SEC Staff views on the inclusion of methane gas within the definition of proved reserves for purposes of the disclosures relating to oil and gas producing activities and the full cost ceiling test.

#### Limitation on Capitalized Costs

##### [360-932-S55-4](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-4)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.1, for SEC Staff views for the consideration of income tax effects in determining the full cost ceiling.

##### [360-932-S55-5](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-5)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.3.a, for SEC Staff views on an exemption to the full cost ceiling limitation for purchased properties.

##### [360-932-S55-6](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-6)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.3.b, for SEC Staff views on use of cash flow hedges in the computation of the limitation on capitalized costs.

##### [360-932-S55-7](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-7)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.3.c, for SEC Staff views on the effect of subsequent events on the computation of the limitation on capitalized costs.

##### [360-932-S55-8](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-8)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.4.b, for SEC Staff views on the effect of FASB Statement No. 143 on the full cost ceiling test.

#### Amortization of Capitalized Costs

##### [360-932-S55-9](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-9)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.2, for SEC Staff views on the exclusion of costs from amortization.

##### [360-932-S55-10](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-10)

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See paragraph [932-360-S99-2](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-2), SAB Topic 12.D.4.b, for SEC Staff views on the effect of FASB Statement No. 143 on the calculation of depreciation, depletion, and amortization.

##### [360-932-S55-11](https://asc.understandingaccounting.org/asc/360/932/#360-932-S55-11)

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See paragraph [932-360-S99-3](https://asc.understandingaccounting.org/asc/360/932/#360-932-S99-3), SAB Topic 12.F, for SEC Staff views on using the gross revenue method when substantial production is not subject to pricing regulation.