A:

Under FP6 rules the contractor must depreciate equipment for the EU cost statements in exactly the same manner as he does for his accounting and annual financial reporting. Thus if in the contractor's accounts the rate is 10% per annum, so it will be for the EU. If, as is the case in some universities, any equipment with a value of Euro 5,000 (or any other level they have set) is fully depreciated in the year it is acquired, so it should be for the cost statements.