life and residual value did not subsequently need revision. On 31 December 2018 the property was revalued downwards to GH¢35 million as a result of the recession (including GH¢14 on 1 January 2016 for GH¢40 December 2017 to GH¢43 million (including GH¢16.6 million in respect of the land). The NAC Ltd acquired a brand new property (land and buildings) buildings element was depreciated over a 50-year useful life to a zero residual value. The useful million (including GH¢15 million in respect of the land). The asset was revalued on 31 e years ended 31 December 2017 and 31 December 2018. Calculate the amounts recognised in profit or loss and other comprehensive income extract for million in respect of the land). Required: the

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.