Depletion
An accounting term describing the amortization of assets that can be physically reduced.
Investopedia Commentary
Unlike depreciation and amortization, which mainly describe the deduction of expenses due to the aging of equipment and property, depletion is the actual physical reduction of natural resources by companies.
For example, coal mines, oil fields and other natural resources are depleted on company accounting statements. This reduction in the quantity of resources is meant to assist in accurately identifying the value of the asset on the balance sheet.
Related Links
Appreciating Depreciation
See also: Accounting, Amortization, Depreciation, Fundamental Analysis, GAAP
depletion
deplete de·plete (dĭ-plēt')
v. de·plet·ed, de·plet·ing, de·pletes
To use up something, such as a nutrient.
To empty something out, as the body of electrolytes.
depletion de·ple·tion (dĭ-plē'shən)
n.
The act or process of depleting.
The state of being depleted; exhaustion.
Removal of or reduction in a body substance, such as blood, a fluid, or a nutrient.