Land & Buldings and their depreciation

[saad25]

Can someone please shed some light on land and buildings and their respective depreciation if any? Example is land has a factory built on it. Would you treat land and building separately? would you charge depreciation to both? And how would you treat revaluation after 5 years. I know a lot of questions but would really appreciate the help. MANY MANY THANKS ALL!!!!

Saad

 

[kirby]

You treat land and building separately.
Building depreciates. Land does not.
After 5 years land is still at cost. Building is at cost less depreciation, unless some event happened (black mold throughout building) that decreases its value and you need to recognize that.