Extractive Activities—Oil and Gas

ASC 93X covers extractive activities, split between Topic 932 (oil and gas) and Topic 930 (mining) (932-10-05-1). The Overall subtopic, ASC 932-10, defines the scope: it applies to all entities with oil- and gas-producing activities — the search for oil and gas, acquisition of property rights, and construction, drilling, and production activities (lifting, gathering, treating, field processing) needed to bring crude oil, natural gas, and synthetic-oil-source hydrocarbons from oil sands, shale, or coalbeds to the surface (932-10-15-2A) — while excluding transporting, refining, and marketing, processing by a nonproducer, other natural resources, geothermal steam, and interest capitalization under Topic 835 (932-10-15-3). The single most important idea is that this industry-specific guidance overrides the more general Codification Topics for the issues it addresses (932-10-05-3), though entities must still comply with other applicable guidance (932-10-15-1) and are not prohibited from using the full-cost method (932-10-15-4).

Subtopics

1. 10Overall26 ¶

   ASC 932-10 is the Overall subtopic of the oil and gas extractive activities Topic; it identifies which entities and activities fall within the industry guidance and supplies common industry definitions. It applies to all entities with oil- and gas-producing activities — the search for, acquisition of rights to, and construction/drilling/production activities needed to bring crude oil, natural gas, and synthetic-oil-source hydrocarbons to the surface (932-10-15-2A). The industry-specific Subtopics override the more general Codification Topics for the issues they address (932-10-05-3), and the Topic does not prohibit use of the full-cost method (932-10-15-4).

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