A company buys land from govt in a economic zone. The land is on a govt. lease for 99 years. should amortization/dep = 1/99 years be charged on the land.
As a normal practice (substance form) , most of the lands are on lease. The intent is to give it to owners but no clear definition is given in the lease deed as to what will happen after 99 years. An individual may have limited life, but a organization having perpetual existence, may live more than 100 years…….regards eish taneja