Query on derpreciation

FRIEND, AS PER AS6 DEPRECIABLE ASSETS ARE THOSE ASSETS WHICH..........

(1) HAVE A LIMITED USEFUL LIFE

(2) ARE EXPECTED TO BE USED FOR MORE THAN ONE ACOUNTING PERIOD .

(3) ARE HELD FOR USE IN PRODUCTION OF GOODS AND SERVICES (not for the purpose of sale in ordinary course of busines )

THE MOST IMPORTANT POINT OF AS6 IS IT IS APPLICABLE ON DEPRECIABLE ASSETS AND LAND IS NOT DEPRECIABLE ASSETS..

Land is not a depreciable assest, since it has an unlimited life.So as per AS-6, land wasn't considered as a depreciable assest

Land may be depreciated if used under Finance lease for a specific period of time. It becomes subject to depreciation again even as a fixed asset if the usage period is limited.

IAS 16 and IAS 17 support this.

Thanks

Amit

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