Capital assets may also be referred to as capital movable equipment. So, what’s the difference between “movable” and “non-movable”?
Non-movable equipment includes permanent or built-in equipment, or costs associated with buildings or renovations. For example, a built-in walk-in cooler would be non-movable, whereas a cooler on wheels that is not permanently affixed to the building structure would be considered movable equipment.
All capital assets are depreciated within the financial system over a defined period, referred to as a useful life and defined by the assigned asset type code. Another differentiation between movable and non-movable equipment is that movable equipment typically has a much shorter useful life than that of non-movable equipment. Typically, movable equipment ranges from four to 10 years, with some specialized equipment having a longer useful life range. The depreciable life is identified on the asset record by the assigned asset type code.
While non-movable equipment may still be considered a capital asset for accounting purposes, it would be managed by the Office of Financial Reporting and not tagged and tracked by CAM. Please contact the Office of Financial Reporting at 517-355-5029 if you have questions regarding non-movable equipment.