It depends on the purpose for which air conditioner is being used.
If AC is used in office purpose, then it will be classified as office equipment and if it is used in production or processes, it will be considered as plant and machinery.
Is AC an office equipment?
These are improvements to leased space that are made by the tenant, and typically include office space, air conditioning, telephone wiring, and related permanent fixtures. Office equipment. This account contains such equipment as copiers, printers, and video equipment.
What is included in Office Equipment?
office equipment definition. A long-term asset account reported on the balance sheet under the heading of property, plant, and equipment. Included in this account would be copiers, computers, printers, fax machines, etc.
What qualifies as a fixed asset?
A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).
What is considered equipment in accounting?
Equipment includes machinery, furniture, fixtures, vehicles, computers, electronic devices, and office machines. Equipment does not include land or buildings owned by a business. From an accounting standpoint, equipment is considered capital assets or fixed assets, which are used by the business to make a profit.