Why isn’t land depreciated?
Land is not depreciated because land is assumed to have an unlimited useful life.
Other long-lived assets such as land improvements, buildings, furnishings, equipment, etc. have limited useful lives. Therefore, the costs of those assets must be allocated to those limited accounting periods. Since land’s life is not limited, there is no need to allocate the cost of land to any accounting periods.
Learn more about Depreciation.
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As you aware that other long-lived assets such as buildings, furnitures, equipment, etc. have limited useful lives. Therefore, the costs of those assets must be allocated over those expected useful life. however some lands can be depreciated Since land’s life is limited, or has a usueful life ( like in the some projects of stone quarry, mine or petroleum projects) in such cases there is a need to allocate the cost of land to the project life.
may you further clarify on reasons why land used in mining projects would have its useful life written down.
Am very interested in this learning accounting concept esp in asset part, I want to know Is human being an asset or not then why cause to my underastanding he/she is involved in the production process like other asset of the Company
please sending for all new rules & taxation guide