Skip Navigation
small NCES header image
Financial Accounting for Local and State School Systems: 2009 Edition
NCES 2009-325
June 2009

Appendix E—Criteria for Distinguishing Equipment From Supply Items — Criteria for Distinguishing Supply and Equipment Items

Documentation containing lists of items identified as supplies or equipment can never be comprehensive or exhaustive and quickly become outdated. To resolve the need to differentiate supplies and equipment without exhaustive lists, the National Center for Education Statistics (NCES) has proposed a set of criteria for distinguishing equipment from supply items, listed in priority order. (See exhibit E-1.) At the first "no," the item is declared to be a supply, not equipment.

Equipment Items

An equipment item is any instrument, machine, apparatus, or set of articles that meets all of the following criteria and has an original individual cost of at least $500 (or no less than the district's capitalization threshold, which may be higher):

  • It retains its original shape, appearance, and character with use.
  • It does not lose its identity through fabrication or incorporation into a different or more complex unit or substance.
  • It is nonexpendable; that is, if the item is damaged or some of its parts are lost or worn out, it is more feasible to repair the item than to replace it with an entirely new unit.
  • Under normal conditions of use, including reasonable care and maintenance, it can be expected to serve its principal purpose for at least 1 year.

Supply Items

An item should be classified as a supply if it does not meet all the stated equipment criteria.


Would you like to help us improve our products and website by taking a short survey?

YES, I would like to take the survey

or

No Thanks

The survey consists of a few short questions and takes less than one minute to complete.