Claiming for Equipment Depreciation in FP7

Thu, 04 Sep 2008 11:15:01 +0200

Some clarification on equipment depreciation from the Finance Helpdesk:

Assuming that you are claiming under eligible costs, equipment necessary for the project can be depreciated and the can be claimed against the project. How you claim for the equipment depreciation should be according to the normal accounting principals of the organisation. If depreciation is 20% per annum, the charge will be 20% per annum (probably on a daily or monthly basis) from the date of purchase or use in the project, whichever is the later. If the normal depreciation rate for the organisation is 50% per annum then that will be the cost on a daily or monthly basis. If 100% depreciation is the norm within the organisation, then 100% depreciation will be charged on the date of acquisition/use within the project.

Of course, the claimed costs have to be in proportion with it’s usage on the project.