depletion


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Depletion

A reduction of the value of an asset on a balance sheet that comes about as a result of the physical reduction of the asset's features. For example, there is only so much oil in an oil field. Depletion reduces the value of the oil field in a way related to the amount of oil drilled up over a given period of time. Depletion is used most often with natural resources. See also: Depreciation, Amortization.

depletion

The periodic cost assigned for a reduction in the quantity and indicated value of a natural resource such as a mineral deposit or timber. Thus, depletion indicates an activity such as harvesting or mining a natural resource. See also cost depletion, depreciation, percentage depletion.

depletion

An accounting and tax term referring to deductions made to account for land becoming less valuable because of the removal of natural resources, including timber and geothermal deposits of hot water or hot rocks.

Examples of items eligible for the IRS depletion allowance under 26 U.S.C.§613(b) are

Borax
Marble
Carbon dioxide
Mollusk shells
Clay
Oil and gas
Coal
Potash
Copper
Sand
Gold
Silver
Granite
Shale
Gravel
Slate
Iron
Stone
Iron ore
Sulfur
Limestone
Timber

For more information,see Publication 535,“Business Expenses,”Chapter 10,“Depletion,”available at the IRS Web site,www.irs.gov.

Depletion

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.
References in periodicals archive ?
Using technology and consuming less is the best solution to overcome resource depletion of oil resources.
As between the two methods of depletion calculation, percentage depletion can produce a higher amount of depletion allowable on properties that are producing large amounts of oil or gas because, subject to certain limitations, it is based on a percentage of the amount of gross income from production and is not limited by the basis of the property (Sec.
The researchers also found that ozone depletion increases ocean acidification.
Seppro technology joins Sigma-Aldrich's leading collection of depletion products, including ProteoPrep(R) kits for the removal of highly abundant proteins, such as albumin and IgG, from human serum and plasma.
Rubin notes that these major project delays and increasingly rapid depletion will result in a supply increase of only about three million barrels a day by 2012 - far below the 10 million barrels projected by the International Energy Agency.
When the mean depletion efficiency was <90% for 3 runs, no further depletions were performed.
Overall, the investigators clearly demonstrate that the lack of an AIDS-like disease in SIV-infected sooty mangabeys is not due to a lack of CD4 T cell depletion in the gut of these animals.
2 fuel oil gave slightly higher depletion rates and slightly lower performance.
Studies have shown that inhibition or depletion of RLIP76, a glutathione-conjugate transport protein that helps cells defend themselves against toxicants, causes apoptosis in a number of cancer cell types.
All these diversions end at the same place, depletion within 20 years anyway, with massive environmental damage.
Though glycogen stores are plentiful, their total depletion becomes an issue when exercising over 90 minutes.