What is depletable assets?

Depletable assets are Natural Resources that can be depleted or exhausted over time through extraction or consumption, such as oil, gas, minerals, and timber. These assets are recorded on a company's balance sheet and are subject to depletion accounting, which allocates the cost of the resource over its useful life. As the resource is extracted, the asset's value decreases, reflecting the reduction in the quantity of the resource available. This accounting treatment helps companies accurately represent the value of their natural resources and their impact on financial performance.