If you’re wondering the question “Is air conditioner asset or liability?”, then bear with this blog. We’re going to discuss whether an air conditioner is an asset or liability. 

We know how much we need air conditioners in our day-to-day lives because of the scorching heat and all the things that the sun is bad for us. In recent years, the temperature has been rising and we can really feel how it’s like to be outside on summer days. 

So, after roaming outside for a bit we can feel the need for an air conditioner in our daily lives. So, the thought of adding an air conditioner to the cart might be buzzing in your head or you might already have an air conditioner. No matter what, we’ll find if the air conditioner will be an asset or liability for you.

air conditioner is asset or liability

Is Air Conditioner Asset Or Liability?

As a definition, fixed assets are bought for long-term use and aren’t likely to be converted easily into cash, similar to land structures. This includes cabinetwork, large pieces of the outfit, and systems similar to lighting and heating, expressing, and air exertion (HVAC). 

Why Air Conditioner Is An Asset? 

Fixed assets do not include movable assets or inventory items consumed in production like an air conditioner. So, an air conditioner is an asset, particularly a fixed asset. 

A fixed asset is one of two major orders of physical property for a company and includes those particulars that remain in one position during business activities. Fixed means do not include portable means or force particulars that are consumed in a production process. Probably they are one-time investments and have longer life spans. 

The term fixed asset refers to a company’s real property, outfit, or material for long-term periods. Fixed means they are not easily or readily convertible to cash, as they are not intended to. Rather, fixed means are allowed to be significant pieces of property that are essential to sustain operations.

What Does Liability mean? 

A liability is like a person or company owes, generally a sum of money. These are settled over time by transferring good benefits, including money, goods, or services. Recorded on the right side of the balance distance, liabilities include loans, accounts outstanding, mortgages, remitted earnings, bonds, guarantees, and accrued charges. 

As an explanation, a liability is an obligation between one party and another not yet completed or paid for. According to accounting, it can be described as a financial liability. It is also an obligation but is more defined by former business deals, events, deals, exchange of means or services, or anything that would benefit after the date. Current arrears are generally considered short-term (expected to be concluded in 12 months or lower), and non-current arrears are long-term (12 months or greater).

Why Is Air Conditioner Not Liability? 

Liability does not bring profit or value. If something is taking less value than the money I paid for it, it is called Liability. So, that means something unnecessary to me; I don’t need to get that just for Liability. 

On the other hand, some things make me remove money from my pocket, but they provide me more value than if I used the money for it. These things are called an asset. 

So, the air conditioner is not a liability but an asset because I need to buy it as an essential product for my home. 

An air conditioner makes my room soundproof and peaceful. It helps to clear my head after a long working day. Also, all kinds of shopping malls, offices, restaurants, business areas, or any institutions; name one thing that is not using the air conditioner as their basic needs. 

So, it is a clear-cut discussion that an air conditioner is not a liability but an asset.

What Kind Of Asset Air Conditioner Is?

The air conditioner is a Leasehold advancement. These are advancements to leased space that the tenant makes. They generally include office space, air conditioning, telephone wiring, and related endless institutions. 

Leasehold advancements are assets and are a part of property, factory, and outfit in the non-current assets section of the balance distance. Thus, they are counted with other fixed assets. So, as an air conditioner is a fixed asset, it also refers to leasehold improvements. 

Though leasehold properties are a cheap method for first-time buyers, one can go for it.

Is Air Conditioner Office Equipment? 

Office pieces of equipment are included with a water dispenser, microwave, telephone, refrigerator, etc. An air conditioner is also an important piece of office equipment. They are used in the office or business areas. 

An office is a place where various kinds of activities proceed at a time. So, it needs to be soundproof and maintain a standing position. Having an air conditioning office area is a definitive solution for this.

I prefer an air conditioner for household items. To maintain a standard policy and a cool environment, an air conditioning office is the smartest way to keep it like that. So, it needs to give priority according to the budget. 

How Long Does an Air Conditioner Last? 

A variety of factors determines the lifespan of an air conditioner. In the same vein as brands, well-maintained, properly cleaned, repaired, and so on. If you keep your air conditioner in good condition, it should last you 10 to fifteen years.

Fixed assets include items such as equipment and gadgets that are essential to the continued operation of a product. This type of equipment requires special considerations and maintenance in order to extend its usable life. Keeping track of these assets is important for a variety of reasons, one of which is to ensure that conservation practices are followed on a consistent basis.

Some well-known air conditioner manufacturers are intended for the useful everyday life of fifteen years, with a realistic normal of twenty years or longer. By cleaning the air conditioners effectively, the proportion of long-lasting life span increases automatically, extending their useful life. In addition, by performing regular inspections and repairs on a variety of systems, their lifespan can be extended.

Some Well Known Air Conditioner Brands :

There are some well-known air conditioner brands –


In this modern era, Daikin is one of the most popular air conditioner brands in the world. Effective cooling with the ease of installation makes Daikin one of the reputed brands in the global air exertion request. So, if someone wants a durable AC coming with a good sanctification system, Daikin would be an ideal choice. 

There are lots of variations in Daikin AC. So, it would not be a problem to choose the right one for different purposes. 

Carrier : 

Carrier is another amazing version of the air conditioner. It has all the features, along with a dehumidifier and anti-bacterial filters. It also has an auto-clean method where it does not feel suffocating inside a room at all. It can cool rooms in just five minutes in a normal mood. 

However, the Carrier air conditioner is very efficient, and it also has ten years warranty. 

Voltas : 

Another air conditioner named Voltas AC is better & worth in price range. It can cool a room in minimum time. They sold more than one million air conditioners last year, which means it was more than 20% of the total ac sol in India. So, the discussion is clear here.

Haier :

Haier is a super air conditioning brand anyone can choose. It is the best in cooling also maintaining and cooling system is easier than other ac brands. It has another benefit, and it can auto-adjust the temperature. 

It is also an eco-friendly product that means it requires less energy than other brands. So, it will be an excellent choice to go for Haier air conditioner. 

Hitachi :

Hitachi is a reputed electronics brand all over the world. When it comes to the quality of the products, Hitachi offers the best air conditioner with lots of benefits. It has some excellent features and advanced technology. One can go for it without any doubt. 

Hitachi air conditioners are here to make life easier, comfortable and refreshing with the amazing features of their products.

Conclusion :

Assets like air conditioners play a role in regulatory compliance. It is maintained over its lifetime to work efficiently. It is important to keep in mind that their value is not everlasting. 

The good fact is that we have the tools and processes available to extend the useful life of the air conditioner. By doing the proper maintenance culture, air conditioners can give us the best performance. So, we need to be prepared for regular cleaning and handling other tools thoroughly. 

So, Is the air conditioner an asset or a liablity? I hope now you know.

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