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Hello sir
In the OT notes it’s stated that ,
With regards to depreciation
It’s stated in the bookDepreciation should be charged over the useful life of the asset land normally has an unlimited life and therefore Does not require depreciation.
So my question is ,
just because the land has an unlimited life
Is it the reason that we don’t charge depreciation for that .So if the answer is yes
Then anything (asset ) with an unlimited life shouldn’t be depreciated yeah sir ?
True – anything with an unlimited life is not depreciated (but the only example you are likely to ever see – certainly in the exam – is land).
(I do state this in my free lectures, and I assume that you are not using the notes without watching the lectures? It is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA approved publishers and study from there).
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