#AccountingBasics

Would make no difference if I posted this fact which everyone knows, but being this as my first post ever on my Linkedin Profile, lets give it a shot.

As a commerce student, you would have definitely experienced this thing, when a doubt struck your mind as to why depreciation is not applicable on land, and your professor simply played it off by countering your question with his own question,

"Bruh, have you ever seen market price of land going down ?.. "

And we all felt amazed and satisfied with his response, thinking this is logical response for our question,

But in reality, we never got the logical reason behind it, which resides not in IQ level of 150+ but in one minute thought based on common sense!

Depreciation basically applies to the assets of the entity which have finite period of life, and when it comes to land - its life is infinite.

Well, well, I know this is not the only reason for not depreciating the land. But how about learning more reasons in comment section below ?