If my company bought a piece of land for $10,000, and ten years later it is worth $20,000, how do I record that appreciation objectively?

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Originally Posted by truslow

If my company bought a piece of land for $10,000, and ten years later it is worth $20,000, how do I record that appreciation objectively?

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What you do is revalue the asset. So you increase the value of the land in your accounts and carry the increase to a revaluation reserve which is part of Equity. You also include a note in your accounts that the value of the land is at valuation. If you follow this path if will be necessary for you to revalue the asset at regular intervals and perhaps give consideration to revaluing other fixed assets. Any revaluations you make should not be arbitrary but made on the report of an accredited valuer