Natural Resources Definition
Natural Resources are assets that are derived from nature.
Natural Resources are a form Asset a company may own, they will be existing in or derived from nature. In other words they are not something made by human. Some examples of Natural Resources include:
Oil and Gas Reserves
Natural Resources are a component of a companys Non Current Assets and will be found on the balance sheet, expected be consumed over a period greater than twelve months. The Natural Resources amount will comprise of the cost of acquisition along with any other costs involved such as exploration, development and anything involving it preperation.
Like all Non Current Assets, Natural Resources require their cost be allocated frequently so that its value reflects well its level of consumption. Unlike Tangible Assets which are Depreciated or Intangible Assets which are Amortized, Natural Resources are Depleted.