wasting asset

(redirected from Wasting Assets)
Also found in: Dictionary.
Related to Wasting Assets: Contingent Assets

Wasting asset

An asset that has a limited life and thus decreases in value (depreciates) over time. Also applies to consumed assets, such as oil or gas, and termed "depletion."

Wasting Asset

An asset, especially a derivative, that loses value over time. A primary example is an out of the money option, which declines in value close to the expiry date because it becomes less likely that the option will become in the money. It can also apply to assets that are consumed, such as oil or food products. In this situation, the asset reaches its highest value at its sale, and then rapidly depreciates. In accounting, a wasting asset is anything subject to depreciation. See also: Absolute physical life.

wasting asset

An asset that tends to decline in value over time as its expected life is used up. A factory machine or an automobile is a wasting asset. Some individuals also consider options or warrants wasting assets because they have a limited life after which they are valueless. Also called shrinking asset.

wasting asset

FIXED ASSETS such as mines, quarries and oil wells, which are used up during their working lives. It is especially important to make adequate provision for DEPRECIATION of such assets.

wasting asset

any NATURAL RESOURCE, such as coal and oil, that has a finite but indeterminate life span depending upon the rate of depletion. See ASSET.

wasting asset

An asset that is depleted or used up over time,such as oil and gas,minerals under the earth,or timberland.Wasting assets may give rise to income tax depletion deductions,similar to the better-known depreciation deductions.

References in periodicals archive ?
The Service also noted that Congress nowhere indicated in the legislative history that the income from a wasting asset should mirror the treatment of the deductions enumerated in Sec.
One suspects even Yogi Berra would realize wasting assets and loss duplication were the most difficult and contentious issues discussed in 1990, and here we go, 12 years later, starting all over, again.
Some will argue that wasting assets must be traced, otherwise it unfairly favors companies with intangible assets.
Thus, the amounts attributable to Class VI and Class VII items could be deemed to be wasting assets (until sold).
He tried to explain and measure the value of a wasting asset using the yields on debt and equity claims on the asset.
Navy plenty of usable Falklands-style power for limited battles using conventional weapons without wasting assets on big, strategic nuclear scenarios against the Soviets in which naval air power no longer makes much sense.
Since HMRC classifies old cars as wasting assets, the PS16.
We save time and money for consumers, while allowing businesses to turn wasting assets into a new revenue stream.
Everybody wins because this policy targets wasting assets,making them useful again for those who need them most.
When you buy a patented product or a portfolio of products, you're buying what are ultimately wasting assets," said Dr de Pass.