The Accounting Review Vol. 28 No. 1 1953
THE DEPLETION PROBLEM.
Abstract
Professional accountants have long been divided on the question whether a charge for depletion should or should not be made in connection, with the preparation of financial statements for mining corporations. This division of opinion is noted particularly in accounting for non-ferrous metal mining corporations. Although the mining industry accounts for only about two percent of the total national income, the subject of depletion accounting is of sufficient theoretical as well as practical importance to merit adequate solution by the profession for the benefit of the investment public, management and the practitioner in the field of accounting. The public accountant expresses an opinion in his certificate as to the fairness of the financial statements as a result of application of generally accepted auditing procedures and based on consistent application of generally accepted accounting principles. However, that opinion is affected by those of experts in other professions in regard to financial areas which are not within the province of the auditors knowledge. Obviously, one of those areas requires the opinion and knowledge of mining engineers and geologists as to mine property, extractable yield and its exhaustion or depletion.
- DOI
- 10.2308/tar-7087651
- Volume
- 28
- Issue
- 1
- Pages
- 102-109
- Language
- en
- Sources
- openalex crossref