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?