Three lives for the same asset
The accounting life, the observed service life and the design life of one item, side by side, with what the difference between them costs a year.
The seamThree numbers for the same asset, held by finance, by maintenance and by the design file, and rarely reviewed together.
The Saudi Ministry of Finance publishes a useful life for 770 asset types in its comprehensive asset manual, and not one of them is a single figure. Every one is a minimum and a maximum. Across all 770 the maximum is a median 1.67 times the minimum, so the annual depreciation charge at the short end of the published range is a median 67% higher than at the long end, and the manual sanctions both.
Publishing a range is the honest thing to do with a quantity nobody can know in advance, and the ministry did it. Page 76 requires the entity to select useful lives within the published ranges and submit them for approval, taking account of the manufacturer, the use and the benefit expected, but it does not specify that the rationale for each selected point must be documented. The manual also prints a default life beside each range, without saying what the default is for. IPSAS 45 paragraph 48 then requires the useful life to be reviewed at least at each annual reporting date, and a review can test a choice against its reasons only where the reasons were kept. One of our standing proposals, with what would show it wrong.
836 classes from the ministry's own table. Type in English or Arabic. The ministry publishes these names in Arabic; the English beside them is a Projects Advisors translation.
So the choice between the two ends of the range is a number rather than a ratio.
1 match.
Distribution and air-conditioning equipment Heating and ventilation equipment Chillers المبردات
English name: Projects Advisors translation.
- The accounting life, as published: 15 to 25 years
- 26,667 a year at 15 years, 16,000 at 25
- A difference of 10,667 a year, every year, on one asset. The short end is 67% higher and both are inside what the manual permits. Capitalisation threshold 10,000 SAR. The manual also prints a default life of 25 years. Comprehensive manual for the census and valuation of assets of government entities, Second edition, approved 10 September 2022; Ministry-hosted rendering, section 5.2, pages 78 to 152, page 90.
- The observed service life
- Chiller, centrifugal: replaced at a mean of 25.2 years, from 30 units, standard deviation 7.6, range 7 to 42209 units still running at a mean age of 17.6 years, which is a lower bound and not a life. Averaging all of them together gives 18.6, which is 26.4% below the observed figure. Why the two columns are never averaged.The largest replaced sample in the cooling set, and still only 30 units. The standard deviation of 7.6 on a mean of 25.2 is a coefficient of variation of 30%, and the observed range runs from 7 to 42 years.Chiller, air-cooled reciprocating: replaced at a mean of 11 years, from 1 unit15 units still running at a mean age of 24 years, which is a lower bound and not a life. Too few replacements to compare against, so no percentage is offered here. Why the two columns are never averaged.One replacement. The figure is an observation, not an estimate, and the in-service mean of 24.0 across 15 units is the more informative number here even though it is a lower bound.Chiller, air-cooled rotary (screw): replaced at a mean of 23 years, from 1 unit8 units still running at a mean age of 12.3 years, which is a lower bound and not a life. Too few replacements to compare against, so no percentage is offered here. Why the two columns are never averaged.A standard deviation of 10.3 on a mean age of 12.3 across 8 units in service. Nothing here supports a default.Chiller, water-cooled reciprocating: no replacements reported9 units still running at a mean age of 20.6 years, which is a lower bound and not a life. Why the two columns are never averaged.No replacements reported. Every unit in the sample is still running at a mean age of 20.6 years, which is a lower bound and nothing else.Chiller, water-cooled rotary (screw): no replacements reported5 units still running at a mean age of 11 years, which is a lower bound and not a life. Why the two columns are never averaged.Five units, none replaced.Same machine under both names: a packaged water chiller serving a building. ASHRAE splits it by compressor and condenser type, which the ministry does not, so the accounting class covers all five rows. ASHRAE Service Life and Maintenance Cost Database, 345 buildings and 38,946 pieces of equipment, read 3 September 2026.
- The design life
- Yours to supply, because nobody publishes one. A design life belongs to a particular specification and comes from the design basis or the manufacturer. Its absence from every published table is the reason it is the life most often quoted and least often checked.
Three lives for the same asset
2026-10-01. projects-advisors.com/tools/three-lives
Distribution and air-conditioning equipment, Chillers. The published accounting life is 15 to 25 years. On 400,000 that is 26,667 a year at the short end against 16,000 at the long end.
Saudi Ministry of Finance, Comprehensive manual for the census and valuation of assets of government entities, Second edition, approved 10 September 2022; Ministry-hosted rendering, section 5.2, pages 78 to 152, page 90. Checked against the Ministry-hosted file on 23 September 2026. There is no automated way to detect a new edition, so check the Ministry before relying on this against a current submission. English asset names are a Projects Advisors translation of the Ministry's Arabic. What requires each figure, and which of the three lives is evidenced, is set out at projects-advisors.com/tools/three-lives
Computed from
- Saudi Ministry of Finance, comprehensive manual for the census and valuation of assets of government entities, Arabic (Second edition, approved 10 September 2022; the rendering the Ministry hosts; read 2026-09-23)https://www.mof.gov.sa/C2A/Knowledge_Center/Documents/%D8%A7%D9%84%D8%AF%D9%84%D9%8A%D9%84%20%D8%A7%D9%84%D8%B4%D8%A7%D9%85%D9%84%20%20%D9%84%D8%AD%D8%B5%D8%B1%20%D9%88%D8%AA%D9%82%D9%8A%D9%8A%D9%85%20%D8%A7%D9%84%D8%A3%D8%B5%D9%88%D9%84%20%D9%84%D9%84%D8%AC%D9%87%D8%A7%D8%AA%20%D8%A7%D9%84%D8%AD%D9%83%D9%88%D9%85%D9%8A%D8%A9.pdf
- IPSAS 45, property, plant and equipment (2023, effective 1 January 2025; read 2026-09-01)https://www.ipsasb.org/publications/ipsas-45-property-plant-and-equipment
- ASHRAE Service Life and Maintenance Cost Database (live database; read 2026-09-26)https://costdatabase.ashrae.org/service_life.asp