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What is 'Depletion'

Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals and oil from the earth. Unlike depreciation and amortization, which mainly describe the deduction of expenses due to the aging of equipment and property, depletion is the actual physical depletion of natural resources by companies.

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Depletion Definition | Investopedia
<span>What is 'Depletion' Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals and oil from the earth. Unlike depreciation and amortization, which mainly describe the deduction of expenses due to the aging of equipment and property, depletion is the actual physical depletion of natural resources by companies. !--break--For accounting and financial reporting purposes, depletion is meant to assist in accurately identifying the value of the assets on the balance sheet and recording expenses in


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