Ankur Kumar (Accountant) (85 Points)
11 October 2017Dear All,
Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land why depreciation is not charged on land instead of appreciation.
Thanks!
Ankur
Ashiwini Ballodia
(Managing Partner at TAXounting)
(8737 Points)
Replied 11 October 2017
Your qurey is not clear as you are giving the answer answer along with the query
Ankur Kumar
(Accountant)
(85 Points)
Replied 12 October 2017
Ashiwini Ballodia
(Managing Partner at TAXounting)
(8737 Points)
Replied 12 October 2017
Land is not depreciated because land have an perpetual life i.e. unlimited useful life.
CA. Kailash Vaishnav
(Practicing CA)
(51 Points)
Replied 06 December 2017
Land is such an asset whose value will not go down. The reasons are many. One of which is the demand as the population goes on increasing the demand goes up and hence the prices. There may be temopary downwards trend due to the economic scenario. But in long term it will reap you profits. Hence depreciation is not provided on land.
CAclubindia
