It should be treated as revenue expenditure because as per my knowledge the fire extinguisher contains expiry. It does not stays for a substantial period of time like an asset . & even the fire extinguisher does not generate any income for a business which is main pre condition for an item to be called as an asset .
In the hands of trained personnel, portable fire extinguishers are the first line of defense against incipient fires, but in order to be useful they need to be accessible. This blog tackles the topic of portable fire extinguisher placement, both how portable fire extinguishers should be distributed and exactly where they are allowed to be placed. The first step is to …
Is a fire extinguisher an asset? – AskingLot.com
A portable fire extinguisher is durable equipment accounted as a capital asset. Testing, maintenance and refill of an extinguisher is an operating expense. Wiki User
People Also Ask should fire extinguisher be capitalized
Can fire extinguisher be capitalized as fixed asset?
As per Para 6.1 of AS 10 "Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business" The fire extinguisher is not used for the purpose of producing or providing goods. Thus it cannot be capitalized.
Is a fire extinguisher an expense?
Fire extinguishers are safety expenses by any business. They are thus used by the company when required in emergencies. These emergencies may arise may be in a year or after that. It is mostly considered as a fixed asset expense as they are stored by the companies for safety for longer period. Likewise, is fire extinguisher an office equipment?
How do I choose the right fire extinguisher?
The first step is to choose the correct extinguisher based on the fire risk. Extinguishers are broken down into the following ratings: The distribution of portable fire extinguishers is a balance between having an extinguisher nearby when you need it but not being overly burdened by the cost and maintenance of having excessive extinguishers.
What type of asset is a fire extinguisher?
Fire extinguisher – fixed asset -office equipment. fire extinguisher is it comes under office equipment- fixed asset. Correspondingly, what type of asset is an air conditioner?
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Fire Extinguisher Locations 14-0 Video Answer
Reference:
https://www.usfa.fema.gov/
https://en.wikipedia.org/wiki/Fire_extinguisher