Welcome, Guest

Want to take part in these discussions? If you have an account, sign in now.

If you don't have an account, apply for one now.

1. • CommentAuthorshOckwave
   • CommentTimeMar 19th 2007

    
   need help on this qtn as well...
   is it true that, that is the case as the building is freehold and building sometimes goes up in value so it is not logical to depreciate something that a value can increase?
2. • CommentAuthormia
   • CommentTimeApr 4th 2007

    
   Im not actually sure, but all I know is that buildings are subject to depreciation. Conservatism records the historical/original cost of the building and not the current market value or the fair market value. So whether the value of a building is increasing or not the amount to be recorded should be its original cost of the building at the time it was being purchased.
3. • CommentAuthorAbusamak
   • CommentTimeApr 7th 2007

    
   hello,
   the definition of depreciation is the process of cost allocation over the estimated useful life of plant assets.
   thus, building can predict a future benefit of it and we use it to perform our jobs.
   for this reason we applicate depreciation for matching principle.