Accumulated depreciation account of land

An accumulated deprecation expenses account maintained for the land is known accumulation depreciation account of land. Depreciation expense of land is credited to this account every financial period (e.g. a year) until the useful life of land come to an end

Generally land is not depreciable; however, land can be depreciated under the following conditions

  • Land will be taken by government (nationalization) in future 
  • Land will be destroyed because of river changing its direction 
  • There is a legal restriction on its future use
  • Land at the sea-shore will be occupied by sea because of increasing water level in sea
  • Land sliding when land is located in mountains area 

Land can not be depreciated if its useful life is not determinably with certainty