Consumables
Supplies and inexpensive capital are commonly viewed as being immediately consumed. These are expensed without tracking their economic life.Batteries | Cleaning Supplies |
Filters | Food & Beverages |
Hammers | Nails & Screws |
Office Supplies | Packaging Materials |
Paper | Safety Gear |
Short-Term Assets
Assets with a economic life of 1-5 years. This includes equipment that wears quickly such as power tools and products that quickly become obsolete such as mobile devices.Commercial Kitchen Appliances | Computers |
Display Cases | Fire Extinguishers |
Lab Equipment | Lighting |
Media Equipment | Mobile Devices |
Office Electronics | Power Tools |
Projectors | Security Cameras |
Sensors | Speakers |
Uniforms | Workbenches |
Medium-Term Assets
Assets with an economic life of 5-20 years. This includes expensive and large scale equipment that is typically designed for a longer service life such as construction equipment. Medium-term assets also include things such as shelving or certain types of furniture that don't tend to wear too quickly.Alarm Systems | Commercial Signage |
Construction Equipment | Furniture & Fixtures |
Industrial Equipment | Industrial Robots |
Manufacturing Machinery | Office Partitions |
Safes | Satellites |
Software | Storage Shelves |
Vehicles |
Long-Term Assets
Assets with an economic life of 20-50 years. These are often significant investments that are designed for a long service life and regularly maintained over time.Aircraft | Commercial Buildings |
Electrical Grids | Heavy Machinery |
Industrial Facilities | Infrastructure |
Manufacturing Plants | Power Systems |
Railroads | Ships |
Warehouses | Wind Turbines |
Perpetual Assets
Assets that last for an indefinite time or longer than 50 years such that they last more than a generation. Includes things that expire but at timeframes longer than 50 years such as well maintained residential structures. Perpetual assets also include things that may retain value forever such as land, precious metals and fine art.Art & Collectibles | Copyrights |
Historical Artifacts | Historical Buildings |
Historical Monuments | Land |
Precious Metals | Residential Buildings |
Trademarks |
Summary
The economic life of an asset is how long that asset will continue to have some value. This is based on the usefulness of the asset over time and factors such as wear & tear or obsolesce.
