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Will you provide depreciation for Land if the market value is higher than the cost of purchase?

Asset Management Accounting Tally Fixed Assets Depreciation
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Question added by Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group
Date Posted: 2016/03/23
Upvote (1) Views (9) Followers (6) Answers (5) Report Question
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Hassan Ibrahim Mohamed IFRS
by Hassan Ibrahim Mohamed IFRS , Finance Manager , Arab Group For Reconstruction & Development

No deprication for the land

younis ahmad ganai
by younis ahmad ganai , SENIOR OFFICER , UAE EXCHANGE AND FINANCIAL SERVICES LTD

LAND IS AN ASSET WHICH IS NOT DEPRECIATED AS THE VALUE OF LAND IS INCREASING DAY BY DAY AND SHOULD BE APPRECIATED.

Patrick Joseph Sablan
by Patrick Joseph Sablan , Senior Accountant , Wahat Al Zaweya Holding PJSC

You do not DEPRECIATE land. You appreciate it.

 

You record at cost. You recognize gain/loss upon selling. Cost < FMV = Gain,,, Cost > FMV = Loss

 

Regards

Mundir Madathil
by Mundir Madathil , SENIOR ACCOUNTANT , ARABIAN PIPE LINES -ANABEEB SERVICES

Never because the land does not having a fixed lifetime 

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Land as an asset is not depreciated. The reason is that land is considered to have an infinite useful life.So depreciation on land can not be provided even if the market value exceeds the cost.

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