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Q: I need information as to the application of the concept of depreciation within FP7. The Rules for participation, as well as Annex 2 to the Model Grant Agreement and the Financial Guidelines, state that eligible costs "must be determined in accordance with the usual accounting and management principles and practices of the beneficiary", however they do not state explicitly that, if a beneficiary uses a cash based accountancy, it is possible to report the whole cost of the equipment without applying any depreciation method.
A: It is only possible to report the whole cost of the equipment without applying any depreciation method if can be proved by the beneficiary in future audits that this constitutes its general policy and practice.
Category : FP7 (Seventh Framework Programme) , Contracts and legal issues