VALIX BOOK ACCUMULATED DEPLETION XXX

-depletion is part of COGS

Wala pang comprehensive standard na available sa -if ever nagbago ang estimated output , currently
topic na ito. and prospectively will adjust.
Ang entity ay maaaring gumamit ng sariling GET THE REMAINING COST/ REMAINING LIFE
accounting policy regarding this topic. GET THE REMAINING COST OF WASTING ASSET –
DEPLETION- is the removal, extraction or exhaustion ACC. DEPLETION/REMAINING OUTPUT
of natural resources. REVISED DEPLETION RATE X ACTUAL OUTPUT
-there is something that you remove which is the DEPRECIATION OF MINING PROPERTY
natural resources like oil, precious stone ,silver, gold INTANGIBLE PROPERTY-one you develop di mo na
- is the systematic allocation of a depletable amount siya marerecover kasama na siya sa extraction
of a wasting asset over the period the natural TANGIBLE PROPERTY-may physical substance that
resources is extracted or produced can be part of wasting asset pero may pagkakataon
-same concept lang with depreciation differences pero adahil Malaki ang amt. tulad ng equipment we
lang ay yung asset na tawag use different account which is PPE.
WASTING ASSET- are materials or objects of NO ALTERNATIVE USE=USEFUL LIFE OF EQUIPMENT
economic value and utility to man produced by Or whichever is SHORTER
nature USEFUL LIFE OF WASTING ASSET
*it is physically consumed-nauubos -wala ng pagagamitan, or nasira na malang di na
*it is irreplaceable-di na napapalitan magagamit
COST OF WASTING ASSETS- -sa service life ang basis/straightline method/pag
-Initially-cost mas mababa ang wasting asset output method ang
-Subsequently-cost model or revaluation model gagamitin
1. ACQUISITION COST- bibili ka ng property kasi WITH ALTERNATIVE USE{MOVABLE} =USEFUL LIFE
magmimina ka for you to have rights na magmina . OF THE EQUIPMENT
SA PPE tumataas ang lupa If nagshutdown di na tuloy ang depletion
SA WASTING ASSETS hinuhukay mo, sa halip na If nagshutdown tuloy ang depreciation
tumaas ang value dito bumababa ang value If moveable normal useful life
LAND itself my value pa rin kaso mas mababa na If no alternative use pag mas mababa ang useful life ,
which is called the LAND VALUE- aalis kana straightline method pero if mas mababa ang useful
COST nung una less LAND VALUE life of wasting asset you have to transfer sa
2. EXPLORATION COST-maghahanap ka kung san remaining life
merong minerals or natural resources DIVIDENDS POLICY
Magkakaroon ng mga geographical survey. TRUST FUND DOCTRINE VS WASTING ASSET
IF *SUCCESSFUL EFFORT METHOD-successful DOCTRINE
exploration lang ang capitalized, if di successful TFD-Nagpautang ang creditors at kung sakaling
expense outright magsarado ang negosyo ang unang babayaran ay
IF *FULL COST METHOD-nakahanap capitalized, di creditors. LEGAL CAPITAL-DI PWEDENG ISAULI SA
nakahanap capitalized SHAREHOLDERS
3. DEVELOPMENT COST-nahanap na idedevelope mo WAD-habang tumatagal umuunti ang nakukuha
lang Sa Malaki ang capital na kailangan therefore ang
4. ESTIMATED RESTORATION COST-if PPE ito yung proportion ay depende sa makukuha
dismantling cost pag nasira tinanggal mo ibabalik mo Di pwedeng isauli ang capital dahil may utang kappa
sa dati or maayos, it will be PV Point-KUNG SAKALING ANG NEGOSYO AY WASTING
WASTING ASSET ASSET PWEDENG MAGBALIK NG CAPITAL KAHIT DI
DEPLETION RATE= PA SARADO
EST . TOTAL OUTPUT
-METHOD AY PRODUCTION OR OUTPUT METHOD RETAINED EARNINGS XXX
DEPPLETION =DEPLETION RATE × ACTUAL OUTPUT CAPITAL LIQUIDATED XXX–BASED AY KUNG
DEPLETION XXX MAGKANO ANG ACC. DEPLETION
DIVIDENDS PAYABLE XXX