{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/932/10/#15-scope-and-scope-exceptions","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":"932","topic_title":"Extractive Activities—Oil and Gas","subtopic":"932-10","subtopic_title":"Overall","section":{"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":"932-10-15-1","para":"15-1","html":"
The Subtopics within the Extractive Activities—Oil and Gas Topic provide incremental industry-specific guidance for the entities defined in this Scope Section. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.
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This Topic applies to all entities with oil- and gas-producing activities.
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Oil- and gas-producing activities include the following:
  1. a
    The search for crude oil, including condensate and natural gas liquids, or natural gas in their natural states and original locations
  2. b
    The acquisition of property rights or properties for the purpose of further exploration or for the purpose of removing the oil or gas from such properties
  3. c
    The construction, drilling, and production activities necessary to retrieve oil and gas from their natural reservoirs, including the acquisition, construction, installation, and maintenance of field gathering and storage systems, such as:
    1. 1
      Lifting the oil and gas to the surface
    2. 2
      Gathering, treating, and field processing (as in the case of processing gas to extract liquid hydrocarbons).
  4. d
    Extraction of 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, and activities undertaken with a view to such extraction.
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The guidance in this Topic does not apply to the following transactions and activities:
  1. a
    Transporting, refining, and marketing of oil and gas
  2. b
    Processing of produced oil, gas, or natural resources that can be upgraded into synthetic oil or gas by an entity that does not serve as a producer of such natural resources
  3. bb
    Activities relating to the production of natural resources other than oil, gas, or natural resources from which synthetic oil and gas can be extracted
  4. c
    The production of geothermal steam
  5. d
    Subparagraph superseded by Accounting Standards Update No. 2010-03.
  6. e
    Accounting for interest on funds borrowed to finance an entity's oil- and gas-producing activities (for general guidance, see Topic 835).
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This Topic does not prohibit an entity from applying the full-cost method of accounting.
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