# ASC 932-10-15: Extractive Activities—Oil and Gas — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/932/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:d5bbea03091e50821053ad320f2632891d64e05a668d22d66a975bb2b7b67a57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 932-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/932/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [932-10-15-1](https://asc.understandingaccounting.org/asc/932/10/#932-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:8a1ee6678f3cc51e67b16ddd14887074c0c00ecaa93d5e66559f24fbfa681734 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Entities ##### [932-10-15-2](https://asc.understandingaccounting.org/asc/932/10/#932-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:54407ce1c090daca1c1d33547bd438bb8f052ba9f612a2405f3d0d36fda976ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic applies to all entities with [oil- and gas-producing activities](https://asc.understandingaccounting.org/glossary/o/#oil-and-gas-producing-activities "Paragraph 932-10-15-2A defines the term oil- and gas-producing activities."). ##### [932-10-15-2A](https://asc.understandingaccounting.org/asc/932/10/#932-10-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:b138a18fbd1389324914d37363d017f85ea93e6a592b471ef7d5e8c57c271d8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Oil- and gas-producing activities include the following: 1. a The search for crude oil, including [condensate](https://asc.understandingaccounting.org/glossary/c/#condensate "Condensate is a mixture of hydrocarbons that exists in the gaseous phase at original reservoir temperature and pressure but that when produced is in the liquid phase at surface pressure and temperature.") and natural gas liquids, or natural gas in their natural states and original locations 2. b The acquisition of property rights or [properties](https://asc.understandingaccounting.org/glossary/p/#properties "Mineral interests in properties (hereinafter referred to as properties), which include all of the following: Fee ownership or a lease Concession Other interest representing the legal right to produce or a revenue interest in the production of oil or gas subject to such terms as may be imposed by the conveyance of that interest. Properties also include: Royalty interests Production payments payable in oil or gas Other nonoperating interests in properties operated by others. Properties include those agreements with foreign governments or authorities under which an entity participates in the operation of the related properties or otherwise serves as producer of the underlying reserves (see paragraph 932-235-50-7); but properties do not include other supply agreements or contracts that represent the right to purchase (as opposed to extract) oil and gas. Properties are classified as proved properties or unproved properties.") for the purpose of further [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.") or for the purpose of removing the oil or gas from such properties 3. c The construction, drilling, 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.") 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](https://asc.understandingaccounting.org/glossary/s/#saleable-hydrocarbons "Hydrocarbons that are saleable in the state in which the hydrocarbons are delivered."), 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. #### Transactions ##### [932-10-15-3](https://asc.understandingaccounting.org/asc/932/10/#932-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:e0bace86e34f425ac48846ef6b1e393682c35158ba599f6f35e267d823ef6b80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/updates/asu-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). ##### [932-10-15-4](https://asc.understandingaccounting.org/asc/932/10/#932-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:12:38.329Z to 2026-09-10T02:12:38.329Z Record version: sha256:0e659987e97a8bb5b5ec4f83f92060cb8cfddde037c7941517583b851ef1d431 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not prohibit an entity from applying the full-cost method of accounting.