Financial Accounting

Free Version

Upgrade subject to access all content


Account For Natural Resources


Natural resources are accounted for differently from other tangible property, plant and equipment. What is the nature of the difference?

Natural resources, such as

, are often called

} because they are

. Natural resources are reported on the balance sheet at cost

. Depletion (or amortization) expense is the process of allocating the cost of natural resource in the period they are