Comments

  1. avatar says

    Depreciation is never charged on freehold land and an intangible asset should be amortised over its estimated useful life.

    Leasehold land is amortised over the lease period.

    Why leasehold land is used amortisation not depreciation? Leasehold land is an intangible asset ?

    Please explain to me.

    Thank you.

    • Avatar of MikeLittle says

      Yes, leasehold land IS an intangible asset – a lease is a legal “right to use” an asset whereas a tangible asset is literally that, it’s tangible, that is, it has physical form and you can touch it.

      You cannot touch a lease. You can touch the piece of paper on which the lease is recorded and you can touch the asset which is the subject of the lease. But you cannot touch a legal “right to use” the leased asset.

      Freehold land is (as near as is possible under English law) owned by the freehold land “owner” and because freehold land is not used up over time, then no depreciation is charged on it. Note that you CAN touch freehold land.

    • Avatar of MikeLittle says

      Oh no! I am devastated that you think this! Maybe I’ll ask admin to remove all my lectures and course notes from the site and you can read your own notes, text book and do your own research. This particular lecture was recorded because so many students felt that they were no able to read a chapter in a text book for themselves. Personally, I didn’t think the subject was worth recording but I bowed down to student pressure.

      I tell you what! Why not just read all the notes for yourself and leave the OpenTuition F7 material totally alone

      And the very best of luck to you

      Enjoy

      :-)

      • avatar says

        Oh no! I am devastated that you think this! he is just reading the notes am i correct he is not explaining how this standard is going to be examined in exams nor they are any example with figures and interpretation and one more thing your sarcasm isn’t funny act like a teacher if you are one i criticize because i am have using open tuition for long time and always appreciated the work of the people who have created this site but to be honest i wouldn’t REGRET ONE BIT IF THEY REMOVE YOUR SHITTY LECTURES .

      • Avatar of marilynlojikim says

        Very rude!! i really hope u regretted saying that to mike. He is such a great tutor! he is sharing his knowledge for free! My goodness! Get a textbook if u dont think this is sufficient!

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