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.
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