102.7 - Statewide Accounting Policy - Land

Policy Area: Accounting and Financial Reporting
Policy Sub Area: Capital Assets
Authority:  GASB Codification Section 1400
Effective Date: 7/1/1995
Last Revision Date: 6/30/2017
Policy Owner/Division: Statewide Accounting


Land is the real estate property held by the State. It can be purchased or donated. Since land is considered not to have a limited useful life and its salvage value is unlikely to be less than its acquisition cost, land is not depreciated. 

Purchased land should be recorded at its cost. The cost includes its purchase price and any other charges necessary to purchase the land. The other charges include costs such as site preparation expenditures, professional fees, and legal claims directly attributable to the land acquisition. If land and building are acquired as a single parcel, the value of the land should be determined separately from the building and recorded in the land account. If land and a building are acquired together with the intent to raze the building, the cost of razing the building would be capitalized as part of the cost of the land. 

Donated land should be capitalized at the acquisition value at the time of donation. 


After ownership is established, the State Property Office should be notified with a Land Update Form (For form example contact the State Property Office).

Accounting Guidance


Related Documents (Memo/Forms)


Revision History

  • 1/22/2007 - Policy updates
  • 6/30/2017 - Updated for GASB Statement 72