Sign Up for Discounts
This form does not yet contain any fields.
    Sunday
    Aug012010

    Which assets are not depreciated?

    Land is not depreciated, since it has an unlimited useful life. If land has a limited useful life, as is the case with a quarry, then it is acceptable to depreciate it over its useful life.

    If the cost of land includes any costs incurred for site dismantlement and/or restoration, then depreciate these costs over the period over which any resulting benefits are obtained.

    If an entity acquires a parcel of land which includes a building, then separate the two assets and depreciate the building.

    Related Topics

    Overview of depreciation
    How do I account for land improvements?
    What is the accounting entry for depreciation?
    What is the purpose of depreciation?
    Why do we not depreciate land?

    PrintView Printer Friendly Version

    EmailEmail Article to Friend

    Reader Comments

    There are no comments for this journal entry. To create a new comment, use the form below.
    Editor Permission Required
    You must have editing permission for this entry in order to post comments.