sheep by A. Roger Davies
Land generally does not depreciate in value because it is a limited resource with an
infinite life and can be used for a range of purposes.
All assets wear out and eventually cease to exist, except land. Land is not considered to ever be able to be destroyed, so it can’t lose value and go down to zero value like other assets.
The land generally retains or increases in value Over the long term, land will go up in value over because the demand is always increasing, while they are not “making” any new land.
If there is something built on the land which the business owns, the accountant has to subtract the cost of the land from the overall cost of the property in order to determine the depreciation expense for the buildings,