An accounting device, used primarily in tax computations. It recognizes the consumption of an ore deposit, a mine's principal asset.
loss, reduction in quantity ...... back
Reduction of known or estimated supply of nonrenewable resource usually by 80% or more
the decrease in quantity of mineral reserves in a deposit or property resulting from extraction or production.
is the reduction in petroleum reserves due to production.
As applied to natural gas producing land and land rights, means the loss in value incurred in connection with the exhaustion of a natural resource.
A method whereby the original value of natural resources may be recovered as they are extracted. Timber, as a capital asset, has a depletion value that is determined by how and when the property was acquired by the seller. (See pages 23-24, USDA Ag Handbook, No. 681)
The amount of cost assigned to the extracted portion of a natural resource such as minerals. You take a depreciation deduction on equipment and buildings, and you take a depletion deduction on your mining operation.
a reduction in the amount of something..... return
The systematic allocation of the cost of a natural resource from the balance sheet to the income statement. To Top
The allocation of the cost of wasting assets (e.g., timer, oil, coal) to the periods benefited by their use.
"The exhaustion of a natural resource through mining, cutting, pumping, or other extraction, and the way in which the cost is allocated."
A special system of depreciation applicable to natural resources (such as an oil well), under which the asset’s owner can deduct a portion of its cost per year. The two methods of depletion are “ cost depletion” and “ percentage depletion.” (See separate entries.)
A portion of the original cost of fixed assets that can no longer be converted into cash, charged as a cost of doing business. Often applied to natural resource assets. Treated similar to depreciation in the Mobley Matrix.
a quantitative disturbance of mtDNA, characterised by tissue-specific reductions in mtDNA copy number
The steadily declining amount of ore in a property resulting from production. Minerals are considered a "depleting resource" because once mined, they cannot be replaced.
The decrease in mineral reserve or resource as a result of mine production.
Reduction in the amount of a capital asset for income tax purposes.
The cost of metal ores and other minerals removed from the earth.
An annual allowance for the exhaustion of natural resources as the result of production and sale based upon the taxpayer's economic interest in the property. Cost depletion involves the amortization of the cost of the property based upon the units produced and sold during the year divided by the estimated reserves in the ground. Percentage depletion allows the deduction of a flat percentage of the gross income (subject to limitation) from the property as a depletion allowance. In any year, a taxpayer is allowed to deduct the greater of cost depletion or percentage depletion attributable to its properties.
The value of a naturally occurring mineral deposit is a function of (I) the market value of the mineral, and (II) the concentration of the mineral in the deposit. Physical depletion is the exhaustion of a mineral deposit through production of the mineral. Economic depletion is the reduction in the value of the mineral deposit as it becomes exhausted (less concentrated) through production.
The process of allocating the cost of natural resources to the periods in which they are consumed. Another term for amortization of natural resources.
an accounting method that allows companies extracting oil, gas, coal, or other minerals to gradually reduce the value of these natural resources.
Gradual using up or consumption of a natural resource.
The using up of natural resources by mining, quarrying, drilling, or felling. The depletion deduction allows an owner or operator to account for the reduction of a product's reserves.
A yearly deduction taken to recover your investment in minerals or standing timber. To take the deduction, you must have the right to income from the mineral extraction or the cutting of the timber.
The reduction in the value of a capital asset (usually a natural resource) in the balance sheet and charging this amount as an expense against income for the period. See: capital recovery.
Refers to consumption of natural resources which are part of a company's assets. Producing oil, mining and gas companies deal in products that cannot be replenished and as such are known as wasting assets.
Natural wastage or reduction.
A system similar to depreciation that allows the owner of natural resources (for example: a coal mine or an oil well) to deduct a portion of the cost of the asset during each year of its presumed productive life.
The process by which the cost or other basis of a natural resource (for example, an oil and gas interest) is recovered upon extraction and sale of the resource. The two ways to determine the depletion allowance are the cost and percentage methods, both of which are defined elsewhere in this glossary.
Recognizing by a charge against income, the reduction in the cost of a natural resource because of its withdrawal, use or sale
A deductible expense reflecting the decrease of a depletable natural resource, such as oil or gas.
reduction in petroleum reserves by production.
The process of cost allocation that assigns the original cost of a natural resource to the periods benefited.
Method of computing a deduction to ACCOUNT for a reduction in value of extractable natural resources.
Physical exhaustion of a natural resource, which is a tax-deductible expense.
Refers to the consumption of natural resources which are part of a company's assets. Since oil, mining and gas companies deal in products that cannot be replenished, depletion reduces the company's natural assets over a specified time period. The recording of depletion is a bookkeeping entry similar to depreciation and does not involve the expenditure of cash.
The use or consumption of a resource faster than itâ€(tm)s replenished. Depletion is most often associated with natural resources, such as oil, gas and minerals, but can also refer to cash, cash equivalents, inventory and property.
