Accounting for Income Taxes: Oil and Gas Producing Companies-an amendment of APB Opinions No. 11 and 23 (Issued 10/75)
This Statement addresses allocation of income taxes related to intangible drilling and development costs (IDC) that are deductible in determination of taxable income, but are capitalized and amortized in the determination of pretax accounting income. This Statement requires companies to allocate the tax effect of IDC that enters into the determination of taxable income and pretax accounting income in different periods. The Statement also provides guidance for companies that elect to include excess statutory depletion in a computation of interperiod tax allocation.