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Which of the following asset is NOT depreciated?

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تم إضافة السؤال من قبل Shazia Anees , Assistant Manager Finance , Arham Trading Company
تاريخ النشر: 2015/06/11
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option1.   Land is the right answer.

Wasim khan wazir
من قبل Wasim khan wazir , Finance Specialist , Mott Macdonald

The IRS and financial accounting rules do not allow land depreciation. However, you may write down, or reduce, the value of land if you believe environmental or regulatory conditions have adversely affected the property's worth. For instance, if you own land in an earthquake-affected area, you may conduct an impairment test and write down the land's worth. So, Option A is correct one,

 

Tranquilino Jr Rivera
من قبل Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Land is the correct Answer. It doesn't depreciate.

Sheikh Zohaib Rehman Zaibi
من قبل Sheikh Zohaib Rehman Zaibi , Admin and Accounts Officer , NAI ZINDAGI

correct answer is land which is not depreciated

Muhammad Ramzan Tufail  ACCA
من قبل Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Land.........................

Bilal Bilal Ashraf
من قبل Bilal Bilal Ashraf , Assistant Accountant and Office Admin , Hamdaani Food Company

Land is an asset which is not Depreciated.

Sanjay Kumar Jangir
من قبل Sanjay Kumar Jangir , Finance Executive , Alchemy Stones India

land is the asset which never depreciate. it always appreciate.

Vijayabharathi Kalyanasundaram (ACMA - INDIA)
من قبل Vijayabharathi Kalyanasundaram (ACMA - INDIA) , Finance Analyst , shell

The answer is Land : Land is not depreciable asset because the life of the asset cannot be determined..Depreciation can be charged on land if it has limited useful life. So you have to first prove that there is limited useful life for land and claim depreciation. 

 

Trupti Gadgil
من قبل Trupti Gadgil , Manager , Cipher Investment and Finance Ltd

Land is the only asset that is not depreciated. Economics teaches us that land is a scarce resource. Therefore, land is not depreciated as demand will always outstrip supply. Depreciation is charged so that the true value of the asset is reflected. Assets that are prone to fall in value due to obsolescence, war and tear etc are depreciated. Land has no such limitations.

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