I am a part time student, and i face some question during my daily working. It is regarding the depreciation for freehold land/building and leasehold land/building. My colleague said that IAS 16 PPE does mention for that, but i read nothing. So, please guide.
How do we treat the depreciation (rate) for:
i) Freehold Land = no depreciation, as infinite useful life. if not, why? ii) Freehold Building = Got this kind of building? Since building is getting older and older, then how to counter the depreciation? iii) Leasehold land = Apportion based on the leasing period given. iv) Leasehold building = 2% per annum applied. if the leasing period is less than 50 years, then apportion based on the leasing period left?