This is a draft cheat sheet. It is a work in progress and is not finished yet.
WASTING ASSETS
Natural resources such as oil, gas, minerals, and timber. |
INITIAL RECOGNITION
Acquisition Cost |
xxx |
Capitalizable Exploration Costs |
xxx |
Intangible Development Costs |
xxx |
Restoration Cost @ PV |
xxx |
Initial Cost of Wasting Asset |
XXX |
CHANGE IN ACCOUNTING ESTIMATES
Examples: additional development cost, change in estimated output, and change in residual value. |
Applied prospectively; New depletion rate will be used (use FIFO). |
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DEPLETION
The systematic removal, extraction, or exhaustion of a natural resource. Depletion charge for each period shall form part of inventory. |
Initial Cost of Wasting Asset |
xxx |
Recoverable Amount |
(xx) |
Depletable Amount |
xxx |
Divided by: Estimated Output |
xxx |
Depletion Rate |
xxx |
Times: Units Extracted |
xxx |
DEPLETION |
XXX |
DEPLETION EXPENSE
Depletion that is sold becomes an expense in the period. |
Depletion Rate |
xxx |
Times: Units Sold |
xxx |
DEPLETION EXPENSE |
xxx |
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