Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

depletion reserve

Read a random definition: respite

A quick definition of depletion reserve:

A depletion reserve is an accounting term used to describe the reduction in value of a resource that is being used up over time, such as an oil reserve. This reduction in value is reflected as a charge to income. Essentially, it is like setting aside money to account for the fact that the resource will eventually run out and become less valuable.

A more thorough explanation:

A depletion reserve is an accounting term used to describe a charge to income that reflects the decrease in the value of a wasting asset. This type of asset is one that is used up over time, such as an oil reserve.

For example, let's say a company owns an oil reserve that is estimated to contain 1 million barrels of oil. Each year, the company extracts and sells 100,000 barrels of oil. As a result, the value of the oil reserve decreases each year. To account for this decrease in value, the company would create a depletion reserve and charge it to their income statement.

Another example of a wasting asset could be a timber forest. As trees are harvested and sold, the value of the forest decreases. A depletion reserve would be created to account for this decrease in value.

In summary, a depletion reserve is a way for companies to account for the decrease in value of a wasting asset over time.

depletion allowance | depone

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.