Non-depreciable Assets
Assets that do not lose value from wear and tear or do not have limited useful lives, such as land and certain collectibles, which are not depreciated.
Non-depreciable Assets
Assets that do not lose value due to wear and tear or obsolescence over time, and therefore are not subject to depreciation, primarily land and certain collectibles or investments.
For example, a company that owns land valued at $1 million would not record depreciation on this asset, as land is assumed to have an unlimited useful life, unlike buildings or equipment placed upon it.
Non-depreciable assets maintain their carrying value on financial statements indefinitely unless impaired or revalued under specific accounting frameworks. While they don’t generate depreciation expenses that reduce taxable income, they preserve capital and may appreciate over time, potentially generating gains upon disposal.