{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/932/","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":"810-932","topic":"810","title":"Extractive Activities—Oil and Gas","area":"Broad Transactions","paragraphs":4,"summary":"This Subtopic permits proportionate consolidation (a proportionate gross presentation of assets, liabilities, revenues, and expenses) for oil and gas ventures, an exception to the general rule that equity method investments in unincorporated entities are presented on a one-line basis. It applies only where proportionate consolidation is established industry practice, and the oil and gas industry is such an industry.","concepts":["proportionate consolidation","equity method investment","unincorporated legal entity","extractive industry","oil and gas exploration and production","gross financial statement presentation","undivided interest"],"categories":["Consolidation","Presentation","Industry-specific","Financial statement presentation"],"level":"intermediate","topic_title":"Consolidation","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-932-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL6809376-166189\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/p/#production\" class=\"term\" title=\"Production involves lifting the crude oil and natural gas to the surface, extracting saleable hydrocarbons, in the solid, liquid, or gaseous state from oil sands, shale, coalbeds, or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas, gathering, treating, field processing (as in the case of processing gas to extract liquid hydrocarbons), and field storage. The oil and gas production function shall be regarded as ending at a terminal point, which is the outlet valve on the lease or field storage tank. If unusual physical or operational circumstances exist, it may be appropriate to regard the terminal point for the production function as: The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser before upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility that upgrades such natural resources into synthetic oil or gas.\"><span>Production</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-03/\" class=\"xref\">Accounting Standards Update No. 2010-03</a></td><td class=\"entry\">01/06/2010</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nProduction | Amended | Accounting Standards Update No. 2010-03 | 01/06/2010 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05f9dc2e05b6345e0e57eb0931160335ec4b5eea7a5c6eca3e3fe873c11ff2aa","downloaded_from":"2026-09-10T01:31:06.373Z","last_downloaded_at":"2026-09-10T01:31:06.373Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477324","source_sha256":"cb391583727da4a721547775668f05e531652423d5ba7301a4dd9290ff388653"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8217e064df2d53dad134298b7c0bdb36840e235e262bf849e9c5c95da506076b","downloaded_from":"2026-09-10T01:31:06.373Z","last_downloaded_at":"2026-09-10T01:31:06.373Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477324","source_sha256":"cb391583727da4a721547775668f05e531652423d5ba7301a4dd9290ff388653"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ff98572785693786f552d99e6408709cecac6db90f344cd84faef3fb897998c","downloaded_from":"2026-09-10T01:31:06.373Z","last_downloaded_at":"2026-09-10T01:31:06.373Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477324","source_sha256":"cb391583727da4a721547775668f05e531652423d5ba7301a4dd9290ff388653"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-932-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses proportionate consolidation, which is allowed in industries in which it has been industry practice. The oil and gas industry is one of the industries in which this is an allowed practice.</div></div>","snippet":"This Subtopic addresses proportionate consolidation, which is allowed in industries in which it has been industry practice. The oil and gas industry is one of the industries in which this is an allowed practice.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:980cf3e0bc75aed22ed1b0d432a641ca2ef0263a41f5cbce55e27cd79a97d4ec","downloaded_from":"2026-09-10T01:31:09.962Z","last_downloaded_at":"2026-09-10T01:31:09.962Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477496","source_sha256":"52c7ec5ed5f5a95c83e41602564a53c331dcb3241ec9b45f3b95d7443303e8e2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2eb61bc75ba64cbae091a343996347f2e1e598b6e77094caf7b62f8b586534a5","downloaded_from":"2026-09-10T01:31:09.962Z","last_downloaded_at":"2026-09-10T01:31:09.962Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477496","source_sha256":"52c7ec5ed5f5a95c83e41602564a53c331dcb3241ec9b45f3b95d7443303e8e2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e544fd750c12281e186ea5bd7a130da845952c59141c3576c46fbaffd140d12d","downloaded_from":"2026-09-10T01:31:09.962Z","last_downloaded_at":"2026-09-10T01:31:09.962Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477496","source_sha256":"52c7ec5ed5f5a95c83e41602564a53c331dcb3241ec9b45f3b95d7443303e8e2"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"810-932-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-DBC21369-4585-4B41-8260-206E58C04720.ditamap\" class=\"ditamap\">932-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a2ceb32c9b57ebc0d37ea28aac7232cfd9cfe5497c5fa65465e8b892ebaab2d","downloaded_from":"2026-09-10T01:31:12.128Z","last_downloaded_at":"2026-09-10T01:31:12.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477311","source_sha256":"62baefb2637cd0f949f63a3f140ea5c463570c2dfd5b259ab4602f960e4847db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c64c318eb3a2d9cd1dfc977da3e4b2c5020fa14cdc36da5f4ff1a2c4ea48f71","downloaded_from":"2026-09-10T01:31:12.128Z","last_downloaded_at":"2026-09-10T01:31:12.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477311","source_sha256":"62baefb2637cd0f949f63a3f140ea5c463570c2dfd5b259ab4602f960e4847db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0487e3ba8ee9404492d49d10c0247141e3ae39933e7bd9b70f62e368b09f345","downloaded_from":"2026-09-10T01:31:12.128Z","last_downloaded_at":"2026-09-10T01:31:12.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477311","source_sha256":"62baefb2637cd0f949f63a3f140ea5c463570c2dfd5b259ab4602f960e4847db"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Proportionate Consolidation","paragraphs":[{"citation":"810-932-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EBBE26BE-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 or an extractive industry (as discussed in this Topic and paragraph <a href=\"/asc/810/930/#810-930-45-1\" class=\"xref\">930-810-45-1</a>). </span></span><span class=\"sfragment\" id=\"sfr_EBBE288B-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 <a href=\"/glossary/e/#exploration\" class=\"term\" title=\"Exploration involves both of the following: Identifying areas that may warrant examination Examining specific areas that are considered to have prospects of containing oil and gas reserves, including drilling exploratory wells and exploratory-type stratigraphic test wells.\"><span>exploration</span></a> and <a href=\"/glossary/p/#production\" class=\"term\" title=\"Production involves lifting the crude oil and natural gas to the surface, extracting saleable hydrocarbons, in the solid, liquid, or gaseous state from oil sands, shale, coalbeds, or other nonrenewable natural resources that are intended to be upgraded into synthetic oil or gas, gathering, treating, field processing (as in the case of processing gas to extract liquid hydrocarbons), and field storage. The oil and gas production function shall be regarded as ending at a terminal point, which is the outlet valve on the lease or field storage tank. If unusual physical or operational circumstances exist, it may be appropriate to regard the terminal point for the production function as: The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser before upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility that upgrades such natural resources into synthetic oil or gas.\"><span>production</span></a>) 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:d892c818c1f80bbc53b2f92ddd2eb5054f02b0428b04ebe2d61cc5664cc4dfc8","downloaded_from":"2026-09-10T01:31:16.096Z","last_downloaded_at":"2026-09-10T01:31:16.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477424","source_sha256":"7b16f3143cb3a4615fea0e23dca2d51851f6763fa913024ffc489b091ac0b663"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c918825f823ac9f93601711ba12118458caae4fef23f0e999988e68083efafb","downloaded_from":"2026-09-10T01:31:16.096Z","last_downloaded_at":"2026-09-10T01:31:16.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477424","source_sha256":"7b16f3143cb3a4615fea0e23dca2d51851f6763fa913024ffc489b091ac0b663"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cc1f42250fa8c4fbce87961a67f5715f0567be0582a58c916f5ec4bea4f771d","downloaded_from":"2026-09-10T01:31:16.096Z","last_downloaded_at":"2026-09-10T01:31:16.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477424","source_sha256":"7b16f3143cb3a4615fea0e23dca2d51851f6763fa913024ffc489b091ac0b663"}}],"enrichment":{"summary":"This Subtopic permits proportionate consolidation (a proportionate gross presentation of assets, liabilities, revenues, and expenses) for oil and gas ventures, an exception to the general rule that equity method investments in unincorporated entities are presented on a one-line basis. It applies only where proportionate consolidation is established industry practice, and the oil and gas industry is such an industry.","key_points":["Proportionate consolidation is allowed in industries where it has been industry practice, and the oil and gas industry is one such industry (810-932-05-1).","The scope follows Section 932-10-15, the Overall Extractive Activities—Oil and Gas Subtopic scope (810-932-15-1).","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 or an extractive industry (810-932-45-1).","An entity qualifies as being in an extractive industry only if its activities are limited to the extraction of mineral resources, such as oil and gas exploration and production (810-932-45-1).","Activities such as refining, marketing, or transporting extracted mineral resources disqualify an entity from the extractive-industry exception (810-932-45-1).","A parallel exception for mining entities is found in paragraph 930-810-45-1 (810-932-45-1)."],"categories":["Consolidation","Presentation","Industry-specific","Financial statement presentation"],"audience_level":"intermediate","student_note":"This is a narrow, exam-friendly exception: proportionate consolidation is generally prohibited, but oil and gas (and construction and mining) ventures may use it. The common mistake is applying the exception to an integrated energy company—the exception is lost once the entity refines, markets, or transports the extracted resources.","related_topics":["810-10","932-10","930-810","323-10","932-360"],"key_concepts":["proportionate consolidation","equity method investment","unincorporated legal entity","extractive industry","oil and gas exploration and production","gross financial statement presentation","undivided interest"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3eaf294b998a7a86153ff5e0edf3de15a9a5bbdd4f54793f5c924eb93dd7bec","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"}},"related":[{"number":"810-930","title":"Extractive Activities—Mining","topic_title":"Consolidation","score":0.9129,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c6fa8089efffc29a8cdfa9cacb7954b101dafe4e897f238065fdd5f4f8c93ba3","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"}},{"number":"810-910","title":"Contractors—Construction","topic_title":"Consolidation","score":0.7633,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2285456939a79be26662444700ac5902eca15ab1368a31aecd389b3a042972e","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":"280-932","title":"Extractive Activities—Oil and Gas","topic_title":"Segment Reporting","score":0.7407,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07d8cd919ec7b834e8940662f6af2b50f09c58509dc8b13b323d36a0c808c98c","downloaded_from":"2026-09-09T23:23:29.240Z","last_downloaded_at":"2026-09-09T23:23:35.523Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"220-932","title":"Extractive Activities—Oil and Gas","topic_title":"Income Statement—Reporting Comprehensive Income","score":0.7393,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b049093cffb8c090f84db18101d14d8e79d51e49e6d2b48f2f00bead8988a2c","downloaded_from":"2026-09-09T23:05:27.480Z","last_downloaded_at":"2026-09-09T23:05:41.911Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"323-932","title":"Extractive Activities—Oil and Gas","topic_title":"Investments—Equity Method and Joint Ventures","score":0.7378,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb56aa5137287964ec7f0f8507fed1f0892b9db1f77c1e4e93f87a370b02332f","downloaded_from":"2026-09-09T23:41:55.287Z","last_downloaded_at":"2026-09-09T23:42:09.804Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-932","title":"Extractive Activities—Oil and Gas","topic_title":"Intangibles—Goodwill and Other","score":0.7371,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25433c1f56f0f936997e802a1b230e0bfb0231b92a70c220ae21dff6952b2e00","downloaded_from":"2026-09-10T00:04:39.480Z","last_downloaded_at":"2026-09-10T00:04:44.333Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"810-930","title":"Extractive Activities—Mining","topic_title":"Consolidation","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2816cfe41b909522eaf5987c2284063561b34343cc908e73691393e52d92ccf0","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"}},"next":{"number":"810-940","title":"Financial Services—Brokers and Dealers","topic_title":"Consolidation","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3d05c2ee3bc699b9421fef934155213dba0b155de5cab1b92e8f1c0cb32aa415","downloaded_from":"2026-09-10T01:31:19.412Z","last_downloaded_at":"2026-09-10T01:31:31.139Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2dd9e01e150d7d590dd1940168f9cba3642d0103cb88b6a8f23caeb3dc4278e","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 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