# ASC 810-932: Consolidation — Extractive Activities—Oil and Gas Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/932/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:31:06.373Z to 2026-09-10T01:31:16.096Z Record version: sha256:a2dd9e01e150d7d590dd1940168f9cba3642d0103cb88b6a8f23caeb3dc4278e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-932: Consolidation — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-10T01:31:06.373Z to 2026-09-10T01:31:06.373Z Record version: sha256:3ff98572785693786f552d99e6408709cecac6db90f344cd84faef3fb897998c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-932-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/810/932/#00-status) SEC content: no ##### [810-932-00-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:31:06.373Z to 2026-09-10T01:31:06.373Z Record version: sha256:05f9dc2e05b6345e0e57eb0931160335ec4b5eea7a5c6eca3e3fe873c11ff2aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ProductionAmendedAccounting Standards Update No. 2010-0301/06/2010
Source downloaded (UTC): 2026-09-10T01:31:09.962Z to 2026-09-10T01:31:09.962Z Record version: sha256:e544fd750c12281e186ea5bd7a130da845952c59141c3576c46fbaffd140d12d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/810/932/#05-overview-and-background) SEC content: no ##### [810-932-05-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:31:09.962Z to 2026-09-10T01:31:09.962Z Record version: sha256:980cf3e0bc75aed22ed1b0d432a641ca2ef0263a41f5cbce55e27cd79a97d4ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T01:31:12.128Z to 2026-09-10T01:31:12.128Z Record version: sha256:e0487e3ba8ee9404492d49d10c0247141e3ae39933e7bd9b70f62e368b09f345 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/810/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [810-932-15-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:31:12.128Z to 2026-09-10T01:31:12.128Z Record version: sha256:4a2ceb32c9b57ebc0d37ea28aac7232cfd9cfe5497c5fa65465e8b892ebaab2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15. Source downloaded (UTC): 2026-09-10T01:31:16.096Z to 2026-09-10T01:31:16.096Z Record version: sha256:3cc1f42250fa8c4fbce87961a67f5715f0567be0582a58c916f5ec4bea4f771d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-932-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/810/932/#45-other-presentation-matters) SEC content: no #### Proportionate Consolidation ##### [810-932-45-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:31:16.096Z to 2026-09-10T01:31:16.096Z Record version: sha256:d892c818c1f80bbc53b2f92ddd2eb5054f02b0428b04ebe2d61cc5664cc4dfc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [810-10-45-14](https://asc.understandingaccounting.org/asc/810/10/#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 the investee is in either the construction industry or an extractive industry (as discussed in this Topic and paragraph [930-810-45-1](https://asc.understandingaccounting.org/asc/810/930/#810-930-45-1)). 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](https://asc.understandingaccounting.org/glossary/e/#exploration "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.") and [production](https://asc.understandingaccounting.org/glossary/p/#production "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.")) and not if its activities involve related activities such as refining, marketing, or transporting extracted mineral resources.