Project Update

Oil and Gas Disclosures

Last Updated: January 8, 2010 (Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective
*Due Process Documents
*Summary of Decisions Reached to Date
*Next Steps
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this limited-scope project is to amend Topic 932, Extractive Activities – Oil and Gas, to align with the SEC’s recently issued Final Rule, Modernization of the Oil and Gas Reporting Requirements (the “Final Rule”).

*Due Process Documents

In January 2010, the FASB completed this project with the issuance of Accounting Standards Update No. 2010-03, Extractive Activities—Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures.

Update 2010-03 

Comment Letter Summary for Exposure Draft 

*Summary of Decisions Reached to Date

See the proposed Accounting Standards Update, Extractive Industries—Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures.

*Next Steps

 None.


Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.

The following are links to the minutes for each meeting.

November 11, 2009 Board Meeting—Proposed Amendments to the FASB Accounting Standards Codification™ Topic 932, Extractive Industries – Oil and Gas
August 5, 2009 Board Meeting—Proposed Amendments to the FASB Accounting Standards Codification™ Topic 932, Extractive Industries – Oil and Gas.
February 18, 2009 Board Meeting—Agenda Announcement

Background Information

The landscape of the oil and gas industry has changed considerably since the establishment of current oil and gas disclosure requirements in 1978 and 1982. The SEC’s Final Rule makes key changes to the industry’s disclosure requirements to better align these requirements with practice as it has evolved. The objective is to provide investors with “a more meaningful and comprehensive understanding of oil and gas reserves.” Taking into consideration over 70 comment letters from its constituents, the SEC refined its proposed rule and issued the Final Rule on December 31, 2008.

On February 18, 2009, the FASB chairman announced that a project has been added to the Board’s agenda to amend Statement 19, as amended, to conform with the SEC’s Final Rule. In its Final Rule, the SEC stated its full support in working with the FASB to align its newly created disclosure and accounting requirements with relevant FASB standards.

Contact Information

Adrian Mills
FASB Practice Fellow
aemills@fasb.org

Louis Phillips
Postgraduate Technical Assistant
lphillips@fasb.org