Why depreciation is not charged on land
Explain why depreciation is not charged on land?
Expert
The land doesn’t get depreciated. The cause being that the depreciation is assumed to be the reduction in the value of an asset since of:
i) Usage, ii) Extraction, iii) Obsolescence and so on.
Either the capital asset is employed and can no more give as much level of output or a few asset from which minerals, coal and so on are extracted are getting exhausted or a few technology and so on are getting obsolete therefore they are depreciated.
The land is not subject to either of the stuff. The market value of the land might go down since of seasonal reasons, however land can’t get depreciated.
Write down the merits of standard costing?
Explain the term Goodwill with espect to intangible asset?
Significant costs associated with the disposal of asset. Accounting for asset retirement obligations requires estimating the cost and discounting estimate. The present value added to the asset's depreciable base and a liability is recorded for the obligation. Every year, interest expense is added
Describe the term Accounting Treatment of Expenditures? Why it is used.
Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.
Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.
Write some of the advantages and disadvantages of closed-end country funds (CECFs) with respect to the American Depository Receipts (ADRs) as means of the international diversification.
When you have visited the London, you have purchased a Jaguar for £35,000, which is payable within the three months. Enough cash is there at your bank in the New York City that pays 0.35% of interest per month, compounding monthly, to pay for car. Presently, spo
What do you mean by the term Equity. Briefly explain it.
In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th
18,76,764
1955110 Asked
3,689
Active Tutors
1412993
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!