Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

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.

General Accounting Discussions: Why buildings are not being depreciated in some cases?

Bottom of Page

1 to 3 of 3

  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?
    • 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.
    • 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.

1 to 3 of 3

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?