ASC

ASC 605-932

Extractive Activities—Oil and Gas

605 Revenue Recognition

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In brief

IntermediateRevenueIndustry-specificTransition and effective datesRecognition

ASC 605-932 was the oil and gas industry-specific guidance under the legacy revenue recognition model (ASC 605), addressing revenue recognition for extractive activities such as gas balancing arrangements. Every substantive paragraph in the subtopic (05-1, 15-1, 25-2, and 50-1) was superseded by ASU 2014-09, so the subtopic now contains no operative guidance. Oil and gas revenue is instead accounted for under ASC 606, with industry-specific application guidance in ASC 932-606.

Key points (4)
  • All content of this subtopic—scope (605-932-15-1), overview (605-932-05-1), recognition (605-932-25-2), and disclosure (605-932-50-1)—was superseded by Accounting Standards Update No. 2014-09.
  • Paragraph 605-932-25-1 is designated 'not used,' so no recognition rule remains in the subtopic.
  • Because nothing operative remains, entities in extractive activities—oil and gas cannot rely on ASC 605-932 for revenue recognition; ASC 606 (and 932-606) governs instead.
  • The subtopic is retained in the Codification only as a historical marker of the legacy model and is relevant chiefly for transition and comparative-period questions.

For students. Don't cite ASC 605-932 as live guidance—it is entirely superseded by ASU 2014-09; the common mistake is assuming industry-specific oil and gas revenue rules (like gas balancing) survived the move to ASC 606 rather than being folded into the five-step model and ASC 932-606.

superseded guidancelegacy revenue recognitionoil and gas revenueextractive activitiesindustry-specific revenue guidance

Machine-generated study aid for ASC 605-932. Check the source paragraphs below.

605-932-00Status

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605-932-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
932-605-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
932-605-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
932-605-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
932-605-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014

605-932-05Overview and Background

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605-932-15Scope and Scope Exceptions

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605-932-25Recognition

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605-932-50Disclosure

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Related subtopics