Depletion (accounting)
   HOME



Depletion (accounting)
Depletion is an accounting and tax concept used most often in the mining, timber, and petroleum industries. It is similar to depreciation in that it is a cost recovery system for accounting and tax reporting: "The depletion deduction" allows an owner or operator to account for the reduction of a product's reserves. Types of depletion For tax purposes, the two types of depletion are percentage depletion and cost depletion. For mineral property, the method leading to the largest deduction is generally used. For standing timber, use of the cost depletion method is required. Depletion, for both accounting purposes and Internal Revenue Service, United States tax purposes, is a method of recording the gradual expense or use of natural resources over time. Depletion is the using up of natural resources by mining, quarrying, Boring (earth), drilling, or logging, felling. According to the IRS Newswire, over 50 percent of oil and gas extraction businesses use cost depletion to figure t ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Accounting
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporations. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and Regulatory agency, regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms. Accounting can be divided into several fields including financial accounting, management accounting, tax accounting and cost accounting. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to the external users of the information, such as investors, regulators and suppliers; and management account ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Mining
Mining is the Extractivism, extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein (geology), vein, coal mining, seam, quartz reef mining, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic viability of investing in the equipment, labor, and energy required to extract, Refining, refine and transport the materials found at the mine to manufacturers who can use the material. Ores recovered by mining include Metal#Extraction, metals, coal, oil shale, gemstones, limestone, chalk mining, chalk, dimension stone, Sodium chloride, rock salt, potash, gravel, and clay. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasibly created Chemical synthesis, artificially in a laboratory or factory. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even fossil wat ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Timber
Lumber is wood that has been processed into dimensional lumber, including Beam (structure), beams and plank (wood), planks or boards, a stage in the process of wood production. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, window frames). Lumber has many uses beyond home building. Lumber is sometimes referred to as timber as an archaic term and still in England, while in most parts of the world (especially the United States and Canada) the term timber refers specifically to unprocessed wood fiber, such as cut logs or standing trees that have yet to be cut. Lumber may be supplied either rough-sawmill, sawn, or surfaced on one or more of its faces. Beside pulpwood, ''rough lumber'' is the raw material for furniture-making, and manufacture of other items requiring cutting and shaping. It is available in many species, including hardwoods and softwoods, such as Pinus classification, white pine and red pine, because of their low cost. ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Petroleum
Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crude oil and petroleum products that consist of refined crude oil. A fossil fuel, petroleum is formed when large quantities of dead organisms, mostly zooplankton and algae, are buried underneath sedimentary rock and subjected to both prolonged heat and pressure. Petroleum is primarily recovered by oil drilling. Drilling is carried out after studies of structural geology, sedimentary basin analysis, and reservoir characterisation. Recent developments in technologies have also led to exploitation of other Unconventional (oil & gas) reservoir, unconventional reserves such as oil sands and oil shale. Once extracted, oil is refined and separated, most easily by Continuous distillation#Continuous distillation of crude oil, distillation, into innume ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value In accounting and in most schools of economic thought, fair value is a rational and unbiased Prediction, estimate of the potential market price of a good, service, or asset. The derivation takes into account such objective factors as the costs a ... of an asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that c ..., such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle). Depreciation is thus the decrease in the value of assets and the method used to reall ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Internal Revenue Service
The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is an agency of the United States Department of the Treasury, Department of the Treasury and led by the Commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers; pursuing and resolving instances of erroneous or fraudulent tax filings; and overseeing various benefits programs, including the Patient Protection and Affordable Care Act, Affordable Care Act. The IRS originates from the Commissioner of Internal Revenue, a federal office created in 1862 to assess the nation's first income tax to fund the American Civil War. The temporary measure ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Natural Resource
Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. On Earth, it includes sunlight, atmosphere, water, land, all minerals along with all vegetation, and wildlife. Natural resources is a part of humanity's natural heritage or protected in nature reserves. Particular areas (such as Fatu-Hiva, the rainforest in Fatu-Hiva) often feature biodiversity and geodiversity in their ecosystems. Natural resources may be classified in different ways. Natural resources are materials and components (something that can be used) that can be found within the environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh water, air, as well as any living organism such as a fish, or it may be transformed by Extract ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Quarrying
A quarry is a type of open-pit mining, open-pit mine in which dimension stone, rock (geology), rock, construction aggregate, riprap, sand, gravel, or slate is excavated from the ground. The operation of quarries is regulated in some jurisdictions to reduce their environmental impact. The word ''quarry'' can also include the underground quarrying for stone, such as Bath stone. Types of rock Types of rock extracted from quarries include: *Chalk *China clay *Scoria, Cinder *Clay *Coal *Construction aggregate (sand and gravel) *Coquina *Diabase *Gabbro *Granite *Gritstone *Gypsum *Limestone *Marble *Ores *Phosphate rock *Quartz *Sandstone *Slate *Travertine Stone quarry Stone quarry is an outdated term for mining construction rocks (limestone, marble, granite, sandstone, etc.). There are open types (called quarries, or open-pit mines) and closed types (Mining, mines and caves). For thousands of years, only hand tools had been used in quarries. In the 18th century, th ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


Boring (earth)
Boring is drilling Drilling is a cutting process where a drill bit is spun to cut a hole of circular cross section (geometry), cross-section in solid materials. The drill bit is usually a rotary Cutting tool (machining), cutting tool, often multi-point. The bit i ... a hole, tunnel, or well in the Earth. It is used for various applications in geology Geology () is a branch of natural science concerned with Earth and other Astronomical object, astronomical objects, the features or rock (geology), rocks of which it is composed, and the processes by which they change over time. Modern geology ..., agriculture Agriculture or farming is the practice of cultivating Plant, plants and livestock. Agriculture was the key development in the rise of Sedentism, sedentary human civilization, whereby farming of Domestication, domesticated species created food ..., hydrology Hydrology () is the scientific study of the movement, distribution, and management of water on Earth ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Logging
Logging is the process of cutting, processing, and moving tree In botany, a tree is a perennial plant with an elongated Plant stem, stem, or trunk (botany), trunk, usually supporting branches and leaves. In some usages, the definition of a tree may be narrower, including only woody plants with secondar ...s to a location for transport. It may include skidding, on-site processing, and loading of trees or logs onto trucks or skeleton cars. Logging is the beginning of a supply chain that provides raw material for many products societies worldwide use for housing, construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ..., energy In physics, energy (from Ancient Greek: wikt:ἐνέργεια#Ancient_Greek, ἐνέργεια, ''enérgeia'', “activity”) is ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


picture info

Mineral Deposit
Ore is natural Rock (geology), rock or sediment that contains one or more valuable minerals, typically containing metals, that can be mined, treated and sold at a profit.Encyclopædia Britannica. "Ore". Encyclopædia Britannica Online. Retrieved 7 April 2021Neuendorf, K.K.E., Mehl, J.P., Jr., and Jackson, J.A., eds., 2011, Glossary of Geology: American Geological Institute, 799 p. Ore is extracted from the earth through mining and treated or Refining (metallurgy), refined, often via smelting, to extract the valuable metals or minerals. The ''grade'' of ore refers to the concentration of the desired material it contains. The value of the metals or minerals a rock contains must be weighed against the cost of extraction to determine whether it is of sufficiently high grade to be worth mining, and is therefore considered an ore. Minerals of interest are generally Oxide mineral, oxides, Sulfide mineral, sulfides, silicate minerals, silicates, or native metals such as native copp ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]  


Depreciation
In accountancy, depreciation is a term that refers to two aspects of the same concept: first, the actual decrease of fair value In accounting and in most schools of economic thought, fair value is a rational and unbiased Prediction, estimate of the potential market price of a good, service, or asset. The derivation takes into account such objective factors as the costs a ... of an asset In financial accounting, an asset is any resource owned or controlled by a business or an economic entity. It is anything (tangible or intangible) that can be used to produce positive economic value. Assets represent value of ownership that c ..., such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle). Depreciation is thus the decrease in the value of assets and the method used to reall ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Bing]   [Yahoo]   [DuckDuckGo]   [Baidu]