Definition of wasting asset

1. fixed assetwith limited life and subject to depreciationIt thereforeexcludes land.
2. natural resource such as oil, coal, and timber, having a limited useful life and subject to depletionSuch assets decrease in worth primarily due to the extraction of the valued commodity held by these assets. see also intangible asset
3. security whose value expires at a specified time in the future. An option contract ( putor call) is an example of awasting asset.

1. fixed asset, other than land, that has a limited useful life and is therefore subject to depreciation.
2. natural resource that diminishes in value because of extractions of oil, ores, or gas, the removal of timber, or similar depletion.

1. fixed asset, other than land, that has a limited useful life and is therefore subject to depreciation.
2. natural resource that diminishes in value because of extractions of oil, ores, or gas, or the removal of timber, or similar depletion and that is therefore subject to amortization.
3. security with a value that expires at a particular time in the future. An option contract, for instance, is a wasting asset, because the chances of a favorable move in the underlying stock diminish as the contract approaches expiration, thus reducing the value of the option.

something of value that deteriorates over time.

Example: improvements to land will not last forever, so they are wasting assets; in contrast, land is not wasting because it will last forever.