Accumulated Depletion

Accumulated Depletion

A total reduction to the value of an asset over time. Accumulated depletion comes about as a result of the physical reduction of the asset's features. For example, there is a limited amount of oil in an oil field. Accumulated depletion is the total reduction to the value of the oil field as the oil is drilled up over time. Accumulated depletion is recorded on a balance sheet most often in connection with natural resources. See also: Contra-Asset, Depreciation, Amortization.
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SFAS 143 ends this practice of recognition through charges to depreciation or depletion and accrual via accumulated depreciation or accumulated depletion by requiring immediate recognition of the liability at fair value.
31, 2001 2000 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,898 $ 95,122 Accounts receivable, less allowance for doubtful accounts $891 (2001 and 2000) 33,167 36,073 Due from affiliates 2,138 -- Prepaid expenses and other 3,859 1,103 Total current assets 52,062 132,298 PROPERTY AND EQUIPMENT: Oil and natural gas properties, full cost method (including $36,100 (2001) and $47,027 (2000) not subject to depletion) 1,054,291 982,566 Land 478 478 Equipment 9,520 10,283 1,064,289 993,327 Accumulated depletion and depreciation 609,493 558,843 454,796 434,484 OTHER ASSETS 3,103 4,139 $509,961 $570,921 THE MERIDIAN RESOURCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (continued) (thousands of dollars) (unaudited) Sept.
Consolidated Balance Sheet As of March 31 2000 1999 ASSETS Current Assets Cash and cash equivalents $ 116,421 $ 440,805 Accounts receivable, trade 65,206 60,809 Inventory 67,297 126,326 Other 67,373 34,575 Total Current Assets 316,297 662,515 Property and Equipment, at cost 168,756 114,649 Less Accumulated depreciation (90,161) (71,515) Net Property and Equipment 78,595 43,134 Oil and Gas Properties, at cost 27,707,069 26,042,456 Less Accumulated depletion (7,290) -- Net Oil and Gas Properties 27,699,779 26,042,456 Total Assets $ 28,094,671 $ 26,748,105 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $ 150,457 $ 194,408 Total Current Liabilities 150,457 194,408 Stockholders' Equity Common stock, $.
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