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Wasting Asset

What is 'Wasting Asset'

An item that irreversibly declines in value, as a function of time. Wasting assets include vehicles, machinery and other fixed assets. Accountants attempt to quantify the amount that assets decrease in value over time, by assigning depreciation schedules to wasting assets, therefore, recognizing the decrease in value each year.

Explaining 'Wasting Asset'

In investing, options are the most common type of wasting asset. An option's value has two components: a time value and an intrinsic value. As the option's expiration date nears, the time value of the option gradually declines to zero. At expiration, an option is worth only its intrinsic value. Nonetheless, wasting assets are usually of a physical nature and experience price erosions as time passes.


Further Reading


The Pentagon's Wasting Assets-The Eroding Foundations of American Power
heinonline.org [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

From perpetual to wasting asset: A time for paradigm shift?From perpetual to wasting asset: A time for paradigm shift?
www.ingentaconnect.com [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

From perpetual to wasting assetFrom perpetual to wasting asset
www.emerald.com [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

Wasting assets: naturalWasting assets: natural
books.google.com [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

The Role of the Petroleum Engineer in the Project Financing TeamThe Role of the Petroleum Engineer in the Project Financing Team
www.onepetro.org [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

'Climate value at risk'of global financial assets'Climate value at risk'of global financial assets
www.nature.com [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …

Accounting for" wasting assets": measurements of income and dependency in oil-rentier statesAccounting for" wasting assets": measurements of income and dependency in oil-rentier states
www.jstor.org [PDF]
… and distort investment decisions while inviting environ- mental abuse and wasting natural resources … drew down natural resource assets and piled up external debt, using the proceeds of … A national accounting system that drew attention to their deteriorating asset positions might …



Q&A About Wasting Asset


What is the most common type of wasting asset found in investing?

Options are the most common type of wasting asset found in investing.

How do accountants attempt to quantify the amount that assets decrease in value over time?

Accountants assign depreciation schedules to wasting assets, therefore recognizing the decrease in value each year.

What is a wasting asset?

A wasting asset is an item that irreversibly declines in value, as a function of time.

What are examples of wasting assets?

Vehicles, machinery and other fixed assets are all examples of wasting assets.