• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App


My company recently purchased a freehold land and building. The cost of the building is estimated as $2 million and the age of building was already 30 years old.

The previous owner did not provide any depreciation for the freehold building as he thought was not required. My question is how do I determined the useful life of the freehold building ? Can I depreciate the freehold building for the next 50 years or should I depreciate the freehold building for the next 20 years as it was already 30 years old?
in IAS 40 - Investment Property by Level 1 Member (1.2k points)

1 Answer

0 votes
It is up to the management to decide based on their judgement. In arriving at a judgement, management may get a professional opinion. So you may use a professional valuer / civil engineer to get an opinion as to the remaining useful life.
by Level 5 Member (11.6k points)