Right of use

As you said., if LAND IS ACQUIRED , it should indicate either the land is purchased/acquired for monetary consideration or acquired on lease terms.

Land as an asset doesnt attract any depreciatiIon., even though pipelines are constructed on it.However pipeline attract depreciation terms.If the land is taken on lease.,again it attracts depreciation/amortization on payment basis.

But as it is seen it appears the land is purchased.So, no write off/dep on land.,Still pipelines constructed attract Depreciation rules as per Schedule II Companies Act 2013

Perpetual rights are similar to copyrights/lease payments which are valued on payment bases.

Moreover As per AS-26, No asset can have life more than 10 years., unless specifically valued /determined

Perpetual rights are similar to copyrights/lease payments which are valued on payment bases.

Moreover As per AS-26, No asset can have life more than 10 years., unless specifically valued /determined

If the land is purchased, i wouldnt have posted a topic ! It is an intangible asset without doubt (it is not lease also. Lease has a time period. Certain some of money paid as compensation)

Since the right to use has no time period, we cannot determine the life of the asset. Without ascertaining the life of an asset, you cannot amortise !!

Hope the question is more clear now

then the matter of question is HOW THE RIGHT TO USE arises., first of all when there is no ownership right existing on such land., and no value in books of account ., obvious no need to depreciate or amortize.,?

It is capitalised as Intangible asset. Company has present and future economic benefits.

Except land, every asset has to be depreciated / amortised !

if the perpetual right to is capitalised as an intangible asset and no finite life is mentioned., 10yrs of minimum life is to be taken unless more life is certified

10 years is not minimum life as per AS 26. It is the maximum specified. 

That's what, if no life determined to infinite period., only upto 10 yrs of useful life can be considered for an intangible asset unless more life is certified.Max life is only 10 yrs and not more than that., Or considering as an expense., it should have been amortised in the yr. of purchase itself be it treated under AS-26.Hope you understand.

Thankyou

10 years have already gone and the economic benefit still continue to arise. The purpose amortisation as per AS 26 is that the future economic benefits embodied in an intangible asset are consumed over a period of time and hence the carrying amount of the asset is reduced to reflect that consumption.

In this case, how would you justify that max life should be taken is only 10 years? you cant even make out 

10 years have already gone and the economic benefit still continue to arise. The purpose amortisation as per AS 26 is that the future economic benefits embodied in an intangible asset are consumed over a period of time and hence the carrying amount of the asset is reduced to reflect that consumption.

In this case, how would you justify that max life should be taken is only 10 years? AS 26 says

Useful life is either (a) the period of time over which an asset is expected to be used by the enterprise; or (b) the number of production or similar units expected to be obtained from the asset by the enterprise. 

Amortisation : The depreciable amount of an intangible asset should be allocated on a systematic basis over the best estimate of its useful life. There is a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. Amortisation should commence when the asset is available for use

If i considered 10 years as useful life, it would be a wrong judgment since the usefulness is continued till the company ceases to operate. 

If 10 yrs is already over by now periodical amortization of asset would already been over since the date of purchase.If no such a/c treatment has been made., it's wrong.

Since the asset(land/perpetual rights to use it) are still arising economic benefits, capitalization of yrly benfits can be done in forecast and backward calculation method.i.e, resorting to valuation of such asset(by external/certified valuation).,

and capitalize it

Can you explain the 2nd paragraph?

And please note that as per IND AS and IFRS (IAS 38) it is permissible not to amortise an asset with indefinite life 

An intangible asset shall be regarded by the entity as having an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity (paragraph 88 of IAS 38).