Accumulated Depreciation Buildings

Code: 1221
👁 Views: 108

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Accumulated depreciation related to buildings

Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).

Common Journal Entries

Recorded annual building depreciation

Dr. Depreciation Expense
Cr. Accumulated Depreciation Buildings

Eliminated accumulated depreciation on sale

Dr. Accumulated Depreciation Buildings
Cr. Buildings

Adjusted accumulated depreciation after revaluation

Dr. Accumulated Depreciation Buildings
Cr. Revaluation Surplus

Additional depreciation due to improvements

Dr. Additional Depreciation Expense
Cr. Accumulated Depreciation Buildings

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 16 Property, Plant and Equipment
US GAAP ASC 360 Property, Plant and Equipment

❓ Frequently Asked Questions

Q: What is accumulated depreciation - buildings?

A: A contra-asset account shown as a deduction from building cost on the balance sheet, representing total accumulated depreciation on buildings.