Land

Code: 1211
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Account Information

Account Type Statement of Financial Position
Normal Balance Debit

Definition

Land owned by the company and used in operations

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

Common Journal Entries

Purchased land for cash

Dr. Land
Cr. Cash in Hand

Purchased land on credit

Dr. Land
Cr. Accounts Payable

Sold land at a gain

Dr. Cash in Hand
Cr. Land
Cr. Gain on Sale of Assets

Revaluation of land upward

Dr. Land
Cr. Revaluation Surplus

International Accounting Standards

IFRS IAS 16 Property, Plant and Equipment

Land not depreciated. Can use cost model or revaluation model. Revaluations must be regular.

US GAAP ASC 360 Property, Plant and Equipment

Land not depreciated. Revaluation model not permitted — cost model only.

⚠ Key Difference: IFRS vs GAAP

IFRS allows revaluation model; GAAP uses cost model only