{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/740/932/#45-other-presentation-matters","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":"740","topic_title":"Income Taxes","subtopic":"740-932","subtopic_title":"Extractive Activities—Oil and Gas","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"740-932-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EB84EC5A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Some costs incurred in an entity's oil- and gas- producing activities enter into the determination of taxable income and pretax accounting income in different periods. A principal example is intangible drilling and development costs, which are deductible in determining taxable income when incurred but which, for successful <a href=\"/glossary/e/#exploratory-well\" class=\"term\" title=\"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.\"><span>exploratory wells</span></a> and for all <a href=\"/glossary/d/#development-well\" class=\"term\" title=\"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.\"><span>development wells</span></a>, are capitalized and amortized for financial accounting purposes under the provisions of this Topic. As another example, some geological and geophysical costs, which are charged to expense when incurred under the provisions of this Topic, are deferred and deducted in subsequent periods for income tax purposes. </span></span></div></div>","snippet":"Some costs incurred in an entity's oil- and gas- producing activities enter into the determination of taxable income and pretax accounting income in different periods. A principal example is intangible drilling and devel…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9a31e0756839db17c707c93ac7cae46617c9920b49a585159da86d64b71ce9c","downloaded_from":"2026-09-10T01:20:04.413Z","last_downloaded_at":"2026-09-10T01:20:04.413Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477977","source_sha256":"f5a8448896a6b8f08fd5ece033d676a04bb1b1f96848475265c000945407d007"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e45b6149e3200e5100358edb97c04bc7e71fb8ad7a1525c49048b1aefb20a7f4","downloaded_from":"2026-09-10T01:20:04.413Z","last_downloaded_at":"2026-09-10T01:20:04.413Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477977","source_sha256":"f5a8448896a6b8f08fd5ece033d676a04bb1b1f96848475265c000945407d007"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69ea0a4a175e681b5072f36917c26be6ef025f811de87c50d60fb185e3e2244b","downloaded_from":"2026-09-10T01:20:04.413Z","last_downloaded_at":"2026-09-10T01:20:04.413Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477977","source_sha256":"f5a8448896a6b8f08fd5ece033d676a04bb1b1f96848475265c000945407d007"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69ea0a4a175e681b5072f36917c26be6ef025f811de87c50d60fb185e3e2244b","downloaded_from":"2026-09-10T01:20:04.413Z","last_downloaded_at":"2026-09-10T01:20:04.413Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477977","source_sha256":"f5a8448896a6b8f08fd5ece033d676a04bb1b1f96848475265c000945407d007"}}