Wahat will be the treatment of that land which is used for mining..............now whether depreciation will be charged? If yes...on what basis.....???
Vivek Agarwal
(Associate)
(21 Points)
Replied 20 October 2011
Wahat will be the treatment of that land which is used for mining..............now whether depreciation will be charged? If yes...on what basis.....???
moin kas
(CA FINAL & TYB.COM Student)
(50 Points)
Replied 21 October 2011
depreciation on mining will be depend on the cost of the land purchased which would be divided by the amount of minerals which is estimated to be extracted and this has to be multiply by the actual amount of minerals extracted to arrive at depreciation on mining
THEREFORE DEPN= COST OF LAND * ACTUAL MINERAL EXTRACTED
ESTIMATED AMOUNT
OF MINERALS TO BE EXT
shwetha
(CWA learner)
(447 Points)
Replied 25 November 2011
| sivaram ACCOUNTS EXECUTIVE [ Scorecard : 4551]   |
Posted about a month ago |
Land generally has appreciated value as compared to other assets |
Well Mr. shivaram as per your explanation land will generally not reduce the value. let me explain one example. In our A.P people want separate Telanga as a state. if govt. suddenly declares that they are giving Telangana generally land rates will reduce in Our Hyderabad premises. Now do we appreciate the land value or depreciate the value or it should be stable? pls explain..............
CAclubindia
