Dear all,
Please clarify me, How to calculate depreciation against lease hold land..
for.ex. land lease - Rs. 2,00,000,00/-, for 50 years lease.
How much amount shown on P&L As depreciation...
3 Replies
SIVASIVA
(FCA, Future CA)
(4935 Points)
Replied 24 July 2010
my opinion:
first of all, depreciation won't come. However, if any contructions are made, for that structure depreciation can be claimed.
anyway, senior members' posts are cordially awaited.
CA lakshmikanth
(Chartered Accountant)
(238 Points)
Replied 31 July 2010
AS per GAAPs Lease hold lands Can be amortised for use full life of lease period so land can be amortised over 50 years on stright line method
Jay Shah
(Article)
(60 Points)
Replied 01 August 2010
remember as 19 is not applicable for land.. and there are two types of land free hold and leasehold.. for freehold land no need to amortised and for lease hold hand should be amortised over a period of life of agreement on SLM basis..
in your case , 2 crs land should be amortised in 50 years..
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