Why depreciation is not charged on land?

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Dear All,

Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land why depreciation is not charged on land instead of appreciation.

 

 

Thanks!
Ankur

Replies (4)

Your qurey is not clear as you are giving the answer answer along with the query

@ Ashiwini Ballodia Sir My question is why depreciation is not charge on land?

Land is not depreciated because land have an perpetual life i.e. unlimited useful life. 

Land is such an asset whose value will not go down. The reasons are many. One of which is the demand as the population goes on increasing the demand goes up and hence the prices. There may be temopary downwards trend due to the economic scenario. But in long term it will reap you profits. Hence depreciation is not provided on land.


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