{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/930/","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.","number":"810-930","topic":"810","title":"Extractive Activities—Mining","area":"Broad Transactions","paragraphs":3,"summary":"This Subtopic addresses when a mining entity may use proportionate consolidation — presenting its pro rata share of an investee's assets, liabilities, revenues, and expenses on a gross basis rather than as a one-line equity method investment. Proportionate consolidation is permitted only where it has been established industry practice, and for extractive activities it is limited to unincorporated legal entities whose activities are confined to the extraction of mineral resources. Entities engaged in refining, marketing, or transporting extracted minerals are not \"in an extractive industry\" for this purpose.","concepts":["proportionate consolidation","pro rata gross presentation","equity method investment","unincorporated legal entity","extractive industry","mineral resources","undivided interest","mining joint venture"],"categories":["Consolidation","Presentation","Industry-specific","Financial statement presentation"],"level":"intermediate","topic_title":"Consolidation","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-930-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Proportionate consolidation is allowed in industries in which it has been industry practice. This Subtopic provides guidance on proportionate consolidation for the mining industry.</div></div>","snippet":"Proportionate consolidation is allowed in industries in which it has been industry practice. This Subtopic provides guidance on proportionate consolidation for the mining industry.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5bd044f0a8f909ed82bc679c9f14e6030870e54503778acbb7688d83915eff6","downloaded_from":"2026-09-10T01:30:58.491Z","last_downloaded_at":"2026-09-10T01:30:58.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-AA35A5E6-ECC5-4A09-8F20-1F9F669B38B9.ditamap\" class=\"ditamap\">930-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 930-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:237d50fddd791a4afabaabd7de25a54dd7d95043e76640342156d6a67358a1aa","downloaded_from":"2026-09-10T01:31:00.184Z","last_downloaded_at":"2026-09-10T01:31:00.184Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478774","source_sha256":"b0b5e250c46eba521dba2fe25d31dc0eeb7e42743ca0cb0942f44d3199840d29"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7695f4b19b2ac75b85ac6554376ead6db6f02a7baad23f6b82b7497019b3366a","downloaded_from":"2026-09-10T01:31:00.184Z","last_downloaded_at":"2026-09-10T01:31:00.184Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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class=\"sfragment\" id=\"sfr_E6242BE4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/810/10/#810-10-45-14\" class=\"xref\">810-10-45-14</a> explains that a proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for by the equity method of accounting unless the investee is in either the construction industry (see paragraph <a href=\"/asc/810/910/#810-910-45-1\" class=\"xref\">910-810-45-1</a>) or an extractive industry (as discussed in this Topic and paragraph <a href=\"/asc/810/932/#810-932-45-1\" class=\"xref\">932-810-45-1</a>). </span></span><span class=\"sfragment\" id=\"sfr_E6243013-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As indicated in that paragraph, an entity is in an extractive industry only if its activities are limited to the extraction of mineral resources (such as oil and gas exploration and production) and not if its activities involve related activities such as refining, marketing, or transporting extracted mineral resources. </span></span></div></div>","snippet":"Paragraph 810-10-45-14 explains that a proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for by the equity method of accounting unless t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49b331d1873c9ff058788a22844bcc75cad40bf81915937cf8909fad623f0055","downloaded_from":"2026-09-10T01:31:02.882Z","last_downloaded_at":"2026-09-10T01:31:02.882Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478374","source_sha256":"b0e669b069c6f4d0c2ea85601a2886e5f2c39d761d45f81a4225b940ad3e4ef3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d780904cf1f6d60cd5a20f120cbf5265ce34b7f61fae56ad12659fb5d348e890","downloaded_from":"2026-09-10T01:31:02.882Z","last_downloaded_at":"2026-09-10T01:31:02.882Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478374","source_sha256":"b0e669b069c6f4d0c2ea85601a2886e5f2c39d761d45f81a4225b940ad3e4ef3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9206f2789477c20d431a57716fa1923056068662c2bbcdda43863b3260e30efb","downloaded_from":"2026-09-10T01:31:02.882Z","last_downloaded_at":"2026-09-10T01:31:02.882Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478374","source_sha256":"b0e669b069c6f4d0c2ea85601a2886e5f2c39d761d45f81a4225b940ad3e4ef3"}}],"enrichment":{"summary":"This Subtopic addresses when a mining entity may use proportionate consolidation — presenting its pro rata share of an investee's assets, liabilities, revenues, and expenses on a gross basis rather than as a one-line equity method investment. Proportionate consolidation is permitted only where it has been established industry practice, and for extractive activities it is limited to unincorporated legal entities whose activities are confined to the extraction of mineral resources. Entities engaged in refining, marketing, or transporting extracted minerals are not \"in an extractive industry\" for this purpose.","key_points":["Proportionate consolidation is allowed only in industries in which it has been industry practice, and this Subtopic applies that guidance to mining (810-930-05-1).","Under paragraph 810-10-45-14, proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for by the equity method unless the investee is in the construction industry (910-810-45-1) or an extractive industry (932-810-45-1) (810-930-45-1).","An entity is in an extractive industry only if its activities are limited to the extraction of mineral resources, such as oil and gas exploration and production (810-930-45-1).","Activities such as refining, marketing, or transporting extracted mineral resources disqualify an entity from extractive-industry treatment and thus from proportionate gross presentation (810-930-45-1).","The scope of this Subtopic follows the Scope and Scope Exceptions of Section 930-10-15 (810-930-15-1)."],"categories":["Consolidation","Presentation","Industry-specific","Financial statement presentation"],"audience_level":"intermediate","student_note":"Proportionate consolidation is a narrow exception to the general rule that equity method investments are presented on one line; the common mistake is assuming any mining or energy company qualifies — the investee must be an unincorporated entity whose activities are limited to extraction, so downstream refining, marketing, or transport activities knock it out.","related_topics":["810-10","930-10","932-810","910-810","323-10"],"key_concepts":["proportionate consolidation","pro rata gross presentation","equity method investment","unincorporated legal entity","extractive industry","mineral resources","undivided interest","mining joint venture"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8ba1ff1be0ecc7d9759c0e3cf2185c5fac021fe7bef46e0fa5fe14155233116","downloaded_from":"2026-09-10T01:30:58.491Z","last_downloaded_at":"2026-09-10T01:31:02.882Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"810-932","title":"Extractive Activities—Oil and Gas","topic_title":"Consolidation","score":0.9129,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27222274d40ab449996afae497b81600d8618c3acae77a44b6e4c2aa7bb75751","downloaded_from":"2026-09-10T01:31:06.373Z","last_downloaded_at":"2026-09-10T01:31:16.096Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-910","title":"Contractors—Construction","topic_title":"Consolidation","score":0.757,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8685cfbf6b97affa1d0d15cb9b05f9969a4cd095faec5a7144b6ed07cb90864f","downloaded_from":"2026-09-10T01:30:36.263Z","last_downloaded_at":"2026-09-10T01:30:41.942Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"805-930","title":"Extractive Activities—Mining","topic_title":"Business Combinations","score":0.7195,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0164e26c6440a9e5dab36dc9edc21f77b55a932e1b7601ba64d729df80318b2","downloaded_from":"2026-09-10T01:26:18.388Z","last_downloaded_at":"2026-09-10T01:26:26.818Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"330-930","title":"Extractive Activities—Mining","topic_title":"Inventory","score":0.7046,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0bdf0cc3221546a31f6e2e231b012127a0900fdb8a8f81fb7745ea377b65171e","downloaded_from":"2026-09-09T23:52:57.013Z","last_downloaded_at":"2026-09-09T23:53:06.919Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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Companies","topic_title":"Consolidation","score":0.6638,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40b48d54d858824007fecaee35dcdb759ae12fee64a3c7f2232b15548af6f0cd","downloaded_from":"2026-09-10T01:32:06.472Z","last_downloaded_at":"2026-09-10T01:32:24.826Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"810-915","title":"Development Stage Entities","topic_title":"Consolidation","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6266b493b2519f368f20ecc9951cc475962431c7b679fe6b966cd8a7b58cd138","downloaded_from":"2026-09-10T01:30:44.132Z","last_downloaded_at":"2026-09-10T01:30:55.736Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"810-932","title":"Extractive Activities—Oil and 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