{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/930/#30-initial-measurement","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":"805","topic_title":"Business Combinations","subtopic":"805-930","subtopic_title":"Extractive Activities—Mining","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Value Beyond Proven and Probable Reserves","paragraphs":[{"citation":"805-930-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E6099965-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall include <a href=\"/glossary/v/#value-beyond-proven-and-probable-reserves\" class=\"term\" title=\"Value beyond proven and probable reserves is the economic value that exists in a mining asset beyond the value attributable to proven and probable reserves. The distinction between the categories of reserves relates to the level of geological evidence and, therefore, confidence in the reserve estimates.\"><span>value beyond proven and probable reserves</span></a> in the value allocated to <a href=\"/glossary/m/#mining-assets\" class=\"term\" title=\"Mining assets include mineral properties and rights.\"><span>mining assets</span></a> in a purchase price allocation to the extent that a market participant would include value beyond <a href=\"/glossary/p/#proven-reserves\" class=\"term\" title=\"Proven reserves are reserves for which both of the following conditions are met: Quantity is computed from dimensions revealed in outcrops, trenches, workings, or drill holes; grade and/or quality are computed from the results of detailed sampling. The sites for inspection, sampling, and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth, and mineral content of reserves are well established.\"><span>proven</span></a> and <a href=\"/glossary/p/#probable-reserves\" class=\"term\" title=\"Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observation.\"><span>probable reserves</span></a> in determining the fair value of the asset.</span></span></div></div>","snippet":"An entity shall include value beyond proven and probable reserves in the value allocated to mining assets in a purchase price allocation to the extent that a market participant would include value beyond proven and proba…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38746c87daa5413cbf0964da708643e35e1393666cb087810c86591f2926a3fa","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72a9bfdf6bc84d0420e2c7d1a89314187831a729838e3788c4ee28fb87a143e3","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}},{"block":null,"heading":"Anticipated Future Price Fluctuations","paragraphs":[{"citation":"805-930-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_E6099A85-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall include the effects of anticipated fluctuations in the future market price of minerals in determining the fair value of mining assets in a purchase price allocation in a manner that is consistent with the expectations of marketplace participants. Generally, an entity should consider all available information including current prices, historical averages, and forward pricing curves. Those marketplace assumptions typically should be consistent with the acquiring entity's operating plans with respect to developing and producing minerals. It generally would be inappropriate for an entity to use a single factor, such as the current price or a historical average, as a surrogate for estimating future prices without considering other information that a market participant would consider.</span></span></div></div>","snippet":"An entity shall include the effects of anticipated fluctuations in the future market price of minerals in determining the fair value of mining assets in a purchase price allocation in a manner that is consistent with the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4afec76aa413906a04892df3ed960640bad3b08c8f06d5a1fedcf696f2c0061b","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d26c6dc606756db94041cf3e43ecdcbd1d21c4e8a974efdd9a0347e310d0d100","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cb8ad4b4c00900d93394091761210243ac4d5896fd7d678661066dac1ef4a6f","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cb8ad4b4c00900d93394091761210243ac4d5896fd7d678661066dac1ef4a6f","downloaded_from":"2026-09-10T01:26:26.818Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477609","source_sha256":"f7c9c636575525a689ae349c27d7c49eca10f4b7013a3841013006c04f925ed9"}}