In 2026, a fire extinguisher is accounted for as a fixed asset if it meets the recognition criteria established by the applicable accounting rules and the organization’s accounting policy; when accounted for as inventory, its cost is written off upon commissioning, while control over its physical availability is maintained. For an individual entrepreneur who is entitled not to maintain accounting records or prepare financial statements, a tangible asset intended for production or administrative purposes and expected to be used for more than one year is classified as a fixed asset (Article 218 of the RK Tax Code).
How to determine the classification of a fire extinguisher
The procedure for accounting for fire extinguishers should be established in the company’s accounting policy. The decision is made consistently based on the characteristics of the item, its expected useful life, cost, materiality, and the company’s adopted procedure for accounting for low-value items.
- How long the fire extinguisher will be used. The assessment takes into account the expected operating period of the item itself rather than the frequency of inspections, maintenance, or charge replacement. The useful life is determined on the date the fire extinguisher is recognized in the accounts. For individual entrepreneurs who do not maintain accounting records or prepare financial statements, a useful life of more than one year forms part of the definition of fixed assets along with the asset’s intended purpose (Article 218 of the RK Tax Code).
- What cost threshold is established in the accounting policy. The company establishes the procedure for accounting for low-cost items, taking into account the applicable accounting rules and materiality. The selected threshold, if used, and the rules for its application must be stated unambiguously.
- How the company controls such items. A uniform accounting procedure may be established for fire extinguishers of the same type, but their quantity, installation locations, and responsible persons must be recorded so that the physical availability of each item can be verified.
If the accounting policy does not define the procedure for accounting for low-value items with a long useful life, the relevant provision should be added before new acquisitions are recognized. The same approach must be applied consistently to comparable items so that fire extinguishers with identical characteristics are not accounted for differently without a valid reason.
Accounting for a fire extinguisher as a fixed asset
When a fire extinguisher is recognized as a fixed asset under the applicable accounting rules and accounting policy, the accountant:
- Determines the initial cost, including the purchase price and costs directly attributable to preparing the item for use. A cabinet or bracket is assessed based on whether it forms part of an item ready for use or constitutes a separate item.
- Documents recognition and commissioning, specifying the installation location, department, and responsible person.
- Establishes the useful life and depreciation method in accordance with the applicable rules and accounting policy. The selected parameters are recorded in the accounting registers and the asset record card.
- Accrues depreciation and allocates it to the expenses of the department or business area in which the fire extinguisher is used.
The accounting classification of an item and its tax accounting treatment are determined under the rules applicable to the specific taxpayer and transaction. Tax legislation provides the legal framework for calculating and paying taxes and payments to the budget, as well as for fulfilling tax obligations (Article 24 of the RK Tax Code). If accounting and tax accounting rules differ, the relevant amounts are recorded in the registers so that the tax calculation can be substantiated by source documents.
The special definitions of fixed assets and inventories in Article 218 of the RK Tax Code apply only to tax accounting maintained by individual entrepreneurs who, in accordance with the legislation, do not maintain accounting records or prepare financial statements. For them, inventories include, in particular, assets intended for use in the production process, for administrative purposes, in the performance of work, or in the provision of services, while fixed assets are tangible assets intended for the relevant purposes and expected to be used for more than one year (Article 218 of the RK Tax Code).
Accounting for a fire extinguisher as inventory
If a fire extinguisher is classified as inventory under the applicable rules and accounting policy, the following procedure applies:
- upon purchase, it is recognized as inventory at the cost determined under the company’s adopted measurement method;
- when transferred to a department, its cost is written off as an expense on the basis of a properly executed source document;
- after its cost has been written off, operational control of fire extinguishers continues by installation location, quantity, and responsible person.
For an individual entrepreneur who does not maintain accounting records or prepare financial statements, inventories for the purposes of the relevant tax accounting procedure include assets intended for sale, use in the production process, administrative purposes, performance of work, or provision of services (Article 218 of the RK Tax Code). If a tangible asset is expected to be used for more than one year, the definition of fixed assets provided in this article must also be taken into account.
The company determines the form of operational control independently: it may use a separate register, statement, or another internal record. It is useful to specify the name and type of fire extinguisher, internal number, installation location, responsible person, transfer date, maintenance information, and disposal date. The register must enable the physical availability of the items to be reconciled with previously executed documents.
Recharging, maintenance, and write-off
Recharging and maintenance. Scheduled recharging, pressure checks, sealing, and other work are recorded based on their actual substance and the terms of the contract. If the work merely keeps the fire extinguisher in working condition and does not change the basis for its initial recognition, its cost is recognized as a current expense on the basis of the contractor’s documents.
Purchase of a spare charge. Charges purchased for subsequent use are accounted for separately until they are transferred for recharging. Their write-off is documented by a record confirming the actual use of the charge.
Write-off. When a fire extinguisher is disposed of, fails, or is declared unfit for use, persons authorized by the company record the item’s condition and the grounds for disposal in a statement. For an item accounted for as a fixed asset, its disposal, accumulated depreciation, and remaining carrying amount are recorded in the registers. Operational records are discontinued for a fire extinguisher whose cost was previously written off upon commissioning. Transfer for recycling is supported by documents issued by the person who accepted the item.
Inventory count and documents
During an inventory count of fire extinguishers, the physical data are reconciled with the fixed asset registers, inventory records, or operational register. The inspection must cover all installation locations and make it possible to identify the specific item assigned to a department or responsible person. This requires:
- checking the physical availability of fire extinguishers at their installation locations;
- reconciling their types, quantities, and internal numbers with the data in the relevant register;
- recording any discrepancies identified, determining their causes, and documenting the inventory count results;
- checking whether transfers, maintenance, replacement, and disposal of items have been recorded in the register used.
The following are retained to support the transactions:
- delivery notes, invoices, and other supplier documents;
- documents on recognition, commissioning, or transfer to a department;
- certificates of completed recharging and maintenance work;
- write-off statements and transfer and recycling documents;
- the accounting policy containing the fixed asset recognition criteria and the procedure for accounting for low-value items;
- an operational register containing installation locations and responsible persons if the cost of the fire extinguishers has already been written off.
For an individual entrepreneur applying the procedure under Article 218 of the RK Tax Code, a source accounting document is documentary evidence on paper or electronic media that confirms the occurrence of a transaction or event and the right to carry it out and serves as the basis for maintaining tax records (Article 218 of the RK Tax Code).
In the accounting software, a fire extinguisher is recorded as a fixed asset or as inventory in accordance with its adopted classification. The specific software document is selected based on the configuration used and the nature of the transaction: receipt, commissioning, transfer to a department, maintenance, relocation, or write-off. The analytical records must ensure that the software data can be reconciled with source documents and physical availability.
Frequently asked questions
Is a fire extinguisher always a fixed asset? — No. Its classification depends on the item’s characteristics, the applicable accounting rules, and the accounting policy. For an individual entrepreneur who does not maintain accounting records or prepare financial statements, a tangible asset intended for production or administrative purposes and expected to be used for more than one year is recognized as a fixed asset (Article 218 of the RK Tax Code).
Should the cost of recharging be added to the cost of a fire extinguisher? — If recharging and maintenance merely keep the item in working condition, their cost is recognized as a current expense. The actual substance of the work and the basis for its recognition must be evident from the contract, the contractor’s certificate, and other supporting documents.
How should fire extinguishers whose cost has already been written off be controlled? — Maintain an operational register by installation location and responsible person. It may also record the internal number and the maintenance, relocation, and disposal dates of each item.
Can several identical fire extinguishers be accounted for in one line? — Aggregated accounting for homogeneous items is permitted if the analytical records retain information about their quantity and cost and their physical availability can be reconciled with the documents. Installation locations, internal numbers, and responsible persons should be recorded separately.
Where is the tax accounting procedure for a fire extinguisher determined? — In the provisions of the RK Tax Code applicable in 2026 to the specific taxpayer and transaction. For example, the definitions of inventories and fixed assets in Article 218 of the RK Tax Code apply only to individual entrepreneurs who do not maintain accounting records or prepare financial statements. The general legal framework for calculating and paying taxes and fulfilling tax obligations is established by tax legislation (Article 24 of the RK Tax Code).
Sources
- Tax Code of the Republic of Kazakhstan, Article 24 “Primary Purpose and Objective of the Tax Legislation of the Republic of Kazakhstan.”
- Tax Code of the Republic of Kazakhstan, Article 218 “General Provisions.”