30 May 2014
Since land is limited and as population increase, its demand go to increase and ultimately its prices go to upward. only in exceptional cases, land prices go down. So land is not depreciable asset, but it is apreciable asset. but in other cases,e.g.Plant & m/c if we have purchsed it today fr rs. 100000/- and after one year if we want to sell it, then it will not sell more than rs. 100000/- but at lower price, but in case of land, it can be sold at higher price.
30 May 2014
Since land is limited and as population increase, its demand go to increase and ultimately its prices go to upward. only in exceptional cases, land prices go down. So land is not depreciable asset, but it is apreciable asset. but in other cases,e.g.Plant & m/c if we have purchsed it today fr rs. 100000/- and after one year if we want to sell it, then it will not sell more than rs. 100000/- but at lower price, but in case of land, it can be sold at higher price.
30 May 2014
actually its simpler. it doesn't go through wear and tear..that is why no depreciation. Plus depreciation is basically an allowance for replacement of the asset...since land doesn't need replacement, more a reason for not providing depreciation.
30 May 2014
actually its simpler. it doesn't go through wear and tear..that is why no depreciation. Plus depreciation is basically an allowance for replacement of the asset...since land doesn't need replacement, more a reason for not providing depreciation.
CAclubindia
