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To account for depletion, an Accumulated Depletion account is created so that it can serve as a contra account for the parent Fixed Asset account. By creating Accumulated Depletion account, companies can reflect the reduction of the natural resource asset and the overall depletion costs in a more accurate way. By properly managing depletion accounting,…

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For example, in the case of Samsung and the lawsuit with Apple, the estimated value of the contingent liability was $700 million. If a liability is reasonably possible—less than probable but more than remote—it is not recorded but must be disclosed in the notes. The disclosure should include a description of the contingency, the potential…

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