Land acquired by donation, or the intent to donate, e.g., for one dollar, should be recorded on the basis of an appraisal of the market value at the date of acquisition. A liability should be recognized for the amount of the lien, mortgage, or encumbrance assumed by the institution. Assumption of liens, mortgages, or encumbrances on the property increases the purchase price and should be included in the original cost. Land acquired through forfeiture should be capitalized at the total amount of all taxes, liens, and other claims surrendered, plus all other costs incidental to acquiring ownership and perfecting title. Cost of getting the land in condition for its intended use, such as excavation, grading, filling, draining, and clearing.landscaping) and improvements that will later be maintained and replaced by other governments (e.g. Unpaid taxes (to the date of acquisition) assumed by the institution.Cost of removing unwanted buildings from the land, less any proceeds from salvage.

Cost of an option to buy the acquired land.

Commissions related to the acquisition.

The following are examples of expenditures that should be capitalized as a part of the cost of land: Land acquired by the institution should be recorded at its original cost which includes a variety of expenditures related to its acquisition and its preparation for use as intended by the institution. Land is generally considered to have an unlimited life and is therefore a non-depreciable asset.

Ifrs capitalization criteria