Wasting Asset

Wasting asset
An asset which has a limited life and thus, decreases in value (depreciates) over time. Also applied to consumed assets, such as gas, and termed "depletion." ...

wasting asset
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Wasting Asset
Definition: Fixed asset that has limited useful life. A wasting asset is subject to depreciation. Definition: [crh] An asset that has a limited life and thus decreases in value (depreciates) over time.

Wasting Asset
1: Securities with a value that expires at a specified time in the future. The time values of the securities deteriorate as their termination date approaches. Examples of wasting assets are option contracts, warrants and rights.

Wasting Asset - A derivative security that loses value due to time decay.
Watch List - A list of securities being monitored closely by a brokerage or exchange in order to spot irregularities.

Wasting asset - 1. a natural resource such as oil, coal, and timber, having a limited use­ful life and subject to depletion. Such assets decrease in worth primarily due to the extraction of the valued commodity held by these assets. Or 2.

Wasting Asset - Is a derivative instrument that may expire worthless after a stated time or event. Options, Rights, and Warrants are three wasting assets.
WCE - Is the Winnipeg Commodity Exchange.

wasting asset An asset that has a limited life, and therefore decreases in value over time (i.e. an option which is out of the money).

But goodwill is usually not a wasting asset. It may never need to be replaced. On that basis the analyst can ignore this amortization as an expense. Depreciation of a building is charged by the accountant.

For fixed assets the term used is depreciation , and for wasting assets (natural resources) it is depletion, both terms meaning essentially the same thing as amortization.

Wasting Asset
An asset with a limited expected useful life with a decreasing value over time....(Read more)
Weak Market
A stock market where volume is low and the spread is high....(Read more)
Weather Derivatives ...

Producing oil, mining and gas companies deal in products that cannot be replenished and as such are known as wasting assets. The recording of depletion is a bookkeeping entry similar to depreciation and does not involve the expenditure of cash.

Purchase and sale of a security either simultaneously or within a short period of time, often in order to recognize a tax loss without altering one's position. See: Tax selling.
Wasting asset ...

intrinsic value, or the entire premium if there is no intrinsic value.
At given price levels the option's time value will decline until
expiration. It is this decrease in time value that makes options a
wasting asset.

Taxable profits are calculated after adding back disallowable costs such as depreciation and most entertaining, but after allowing for capital allowances on wasting asset purchases (such as machinery and computers).

Depletion method: a method of depreciation applicable to wasting assets such as mines and quarries. The amount of depreciation in a year is a function of the quantity extracted in the year compared to the total resource.

See also: Depletion, Expense, Values, Expected return, Tangible asset