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INCOME TAXES
 3 Months Ended
Dec. 31, 2015
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
 
The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows:
 
 
 
Three months ended 
 December 31,
 
 
2015
 
2014
United States
 
$
(726,000
)
 
$
(236,000
)
Canada
 
(876,000
)
 
(320,000
)
 
 
$
(1,602,000
)
 
$
(556,000
)

 
The components of the income tax provision (benefit) are as follows:
 
Three months ended 
 December 31,
 
2015
 
2014
Current
$
(209,000
)
 
$
3,000

Deferred
16,000

 
(92,000
)
 
$
(193,000
)
 
$
(89,000
)

 
As a result of significant declines in oil and natural gas prices, funds available for oil and natural gas capital expenditures are projected to be minimal in the near term and thus Barnwell's ability to replace production and abate declining reserves has been significantly restricted. Accordingly, Barnwell determined in the second quarter of fiscal 2015 that it is not more likely than not that all of our oil and natural gas deferred tax assets under Canadian tax law are realizable. As a result, the Company recorded a valuation allowance during the year ended September 30, 2015 for the portion of Canadian tax law deferred tax assets related to asset retirement obligations that may not be realizable. Included in the deferred income tax expense for the three months ended December 31, 2015, was $53,000 for the additional valuation allowance necessary for the portion of Canadian tax law deferred tax assets that may not be realizable. There was no such valuation allowance recorded in the prior year period.

Consolidated taxes do not bear a customary relationship to pretax results due primarily to the fact that the Company is taxed separately in Canada based on Canadian source operations and in the U.S. based on consolidated operations, Canadian income taxes are not estimated to have a future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating losses and other deferred tax assets under U.S. tax law are not estimated to have any future U.S. tax benefit. In addition, consolidated taxes in the current year period includes the aforementioned valuation allowance for a portion of deferred tax assets under Canadian tax law.