shrinking asset

Shrinking Asset

1. An asset that depreciates. For example, an automobile is a shrinking asset because it loses value over time due to its limited useful life. Shrinking assets are important in taxation: one pays less in taxes on an asset the more it depreciates. See also: Absolute physical life.

2. An asset that is consumed. These shrinking assets are usually commodities; for example, a trucking company may buy a large amount of gasoline, which could theoretically be resold or liquidated, but is in fact used in the operation of the trucking company.

shrinking asset

See wasting asset.
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References in periodicals archive ?
gradually declining earnings from the bank's shrinking asset base, leads
Moody's affirms DEPFA's Baa3 unsecured debt ratings
Recent memories of shrinking asset values may damp consumers' motivation to ramp up their expenditures immediately.
Household finances and a sustainable consumer recovery
The momentum generated in 2007-08 with new fund launches was severely undermined with weak fund performance and a shrinking asset base.
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So this issue of The Business Owner hits even harder: how to reduce costs, cut spending, deal with adversity, change your viewpoints, find the silver lining, take advantage of shrinking asset values and, yes, understand and face bankruptcy:
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Given the hangover of outstanding debt and recent memories of shrinking asset values, consumers may not be motivated to ramp up their expenditures.
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Holland Cooke, a radio con-sultant from Rhode Island, said there are two trends contributing to this development: I luge radio corporations are shouldering enormous debt, leading to shrinking assets in small-and medium-market stations, and younger audiences are losing interest in shows patterned after leading talk show hosts.
Stormy weather ahead for talk radio
Unlike the leverage ratio, where the only remedies are increasing capital or shrinking assets, credit unions can also manage their balance sheet mix (risk) to remain well capitalized under the risk-based requirement.
Why does the NCUA need to update risk-based capital rules?
Given their shrinking assets in this climate of austerity, the least they can pledge is moral support.
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Baby Boomers are increasingly becoming aware of the risk of shrinking assets.
The right way to plan for retirement: how new consumer attitudes and needs are shaping the market

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