advance repayable in cash

Liabilities1

1. 470-932Extractive Activities—Oil and Gas470 Debt

   This Subtopic governs how oil and gas entities account for certain "conveyance" transactions that are, in substance, borrowings repayable in cash or its equivalent. Under 470-932-25-1, such arrangements must be recorded as a payable by the operator receiving the funds and a receivable by the party advancing the funds, rather than as a sale or conveyance of mineral interests.