The Balance Sheet 181
and machinery and equipment not elsewhere classi-
fi ed. Machinery and equipment forming an integral
part of a building or other structure are included in
the value of the building or structure rather than in
machinery and equipment. Tools that are inexpensive
and purchased at a relatively steady rate, such as hand
tools, are not considered fi xed assets unless they form
a large share of the stock of machinery and equip-
ment. As explained in paragraph 7.38, machinery and
equipment under a fi nancial lease are classifi ed here
because they are treated as being acquired by the user
(lessee). Machinery and equipment acquired for mili-
tary purposes other than weapons systems are classi-
fi ed under this category; weapons systems (6114) form
a separate category (see paragraph 7.74).
7.53 Machinery and equipment are classifi ed in
two main categories: transport equipment (61121) and
machinery and equipment other than transport equip-
ment (61122), with a further breakdown of other ma-
chinery and equipment, as shown in Table 7.4.
Transport equipment (61121)
7.54 Transport equipment (61121) consists of equip-
ment for moving people and objects, including motor
vehicles, trailers and semitrailers, ships, railway loco-
motives and rolling stock, aircraft , motorcycles, and
bicycles. Markets for existing automobiles, aircraft ,
and some other types of transportation equipment
may be suffi ciently representative to yield price ob-
servations that are superior to valuations at written-
down replacement cost.
Machinery and equipment other than transport equipment (61122)
7.55 Th is category consists of all machinery and
equipment other than transport equipment. A dis-
tinction is made between information, computer, and
telecommunications (ICT) equipment (611221) andMachinery and equipment not elsewhere classifi ed (611222)
Information, computer, and telecommunications equipment (ICT) (611221)
7.56 Information, computer, and telecommunica-
tions equipment (611221) consists of devices using
electronic controls and also the electronic compo-
nents forming part of these devices. Examples are
products that form part of computing machinery and
parts and accessories thereof, television and radio
transmitters, television, video, and digital cameras,
and telephone sets. In practice, this narrows the cov-
erage of ICT equipment mostly to computer hardware
and telecommunications equipment.Machinery and equipment not elsewhere
classifi ed (611222)
7.57 Th is category includes all machinery and equip-
ment not classifi ed in any of the other machinery and
equipment categories.^18 Types of assets that would be
included are general- and special-purpose machinery;
offi ce and accounting equipment; electrical machinery;
medical appliances; precision and optical instruments;
furniture; watches and clocks; musical instruments;
and sports goods. It also includes paintings, sculptures,
other works of art or antiques, and other collections of
considerable value that are owned and displayed for
the purpose of producing museum and similar ser-
vices. Similar items owned primarily as stores of value
that are not intended for use in production would be
classifi ed as valuables (see paragraphs 7.87–7.89). Also
excluded from this category are inexpensive durable
goods such as small/hand tools that are recorded as use
of goods and services (22) (see paragraph 6.43).Other fi xed assets (6113)
7.58 Other fi xed assets consist of cultivated biologi-
cal resources (61131) and intellectual property products
(61132), as shown in Table 7.5.(^18) All items under the United Nations’ Central Product Classifi -
cation (CPC), version 2.0, categories 43–48, are included here,
except for categories 452 and 472, which are classifi ed under
Information, Computer, and Telecommunications (ICT) Equip-
ment. For more details, see http://unstats.un.org/unsd/cr/registry/
cpc-2.asp.
Table 7.4 Classifi cation of Machinery and
Equipment
6112 Machinery and equipment
61121 Transport equipment
61122 Machinery and equipment other than
transport equipment
611221 Information, computer, and
telecommunications (ICT) equipment
611222 Machinery and equipment not
elsewhere classifi ed