Land depreciation

Others 1392 views 3 replies

Hi,

 

could anyone please tell the circumstances under which land can be depreciated or amortised?

Replies (3)

In my view, depreciation is not calculated on land because it has unlimited useful life. Depreciation is aimed at spreading the cost of an asset over its economical useful life. But in case of land we can't estimate its useful life, hence its not possible to calculate depreciation on land. However, if any land improvement cost occurs, then such cost can be allocated to its useful accounting periods. Also in case of quarries, land can be depleted. Also AS-6 does not cover land. Let others too comment.

Only if land has limited useful life then you can charge depreciation or amortisation.

For example if you are owning land only for the purpose of extracting some minerals from it and once the complete extraction is done if it is useless then you can charge the cost of land as depreciation for the period estimated to be useful.

if land is lease hold land


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details