Common use of Equipment Costs Clause in Contracts

Equipment Costs. Costs of renting or leasing equipment 1.3.1 This budget category covers the costs of renting or leasing equipment (finance leasing, renting and operational leasing). 1.3.2 Equipment costs must be declared as actual costs (see Article 5.2(d)). 1.3.3 The costs must comply with the following conditions for eligibility: 6.1 (a)) • not exceed the depreciation costs of similar equipment, infrastructure or assets • not include any financing fees. 1.3.4 They must be calculated according to the following principles: Leasing (finance leasing) with the option to buy the durable equipment: the equipment leased by the beneficiary is recorded as an asset of the beneficiary and the corresponding depreciation costs may be charged in accordance with the beneficiary’s usual accounting practices. The cost claimed cannot exceed the costs that would have been incurred if the equipment had been purchased and depreciated under normal accounting practices. The finance charges included in the finance lease payments are thus ineligible. The costs declared under the action cannot include any interest on loans taken to finance the purchase, or any other type of financing fee. Renting and operational leasing: the equipment rented or leased by the beneficiary is not recorded as an asset of the beneficiary. There is no depreciation involved (as the item is still the property of the renting or leasing firm), but the rental or lease costs of the beneficiary (i.e. its periodic payments to the renting or leasing firm) are eligible, if they follow the beneficiary’s usual practices and do not exceed the costs of purchasing the equipment (i.e. are comparable to the depreciation costs of similar equipment).

Equipment Costs. Costs of renting or leasing equipment 1.3.1 What? This budget category covers the costs of renting or leasing equipment (finance leasing, renting and operational leasing). 1.3.2 Equipment costs must be declared as actual costs (see Article 5.2(d)). 1.3.3 The costs must comply with the following conditions for eligibility: 6.1 (a)) • not exceed the depreciation costs of similar equipment, infrastructure or assets • not include any financing fees. 1.3.4 They must be calculated according to the following principles: Leasing (finance leasing) with the option to buy the durable equipment: the − The equipment leased by the beneficiary is must be recorded as an asset of the beneficiary and the corresponding depreciation costs may be charged declared in accordance with the beneficiary’s usual accounting practices. − The cost claimed cannot costs declared canNOT exceed the costs that would have been incurred if the equipment had been purchased and depreciated under normal accounting practices. The finance charges included in the finance lease payments are thus ineligible. − The costs declared under the action cannot canNOT include any interest on loans taken to finance the purchase, or any other type of financing fee. Renting − For renting and operational leasing: the equipment rented or leased by the beneficiary is not recorded as an asset of the beneficiary. : There is no depreciation involved (as since the item is still the property of the renting or leasing firm), but the rental or lease costs of the beneficiary (i.e. its periodic payments to the renting or leasing firm) are eligible, if they follow the beneficiary’s usual practices and do not exceed the costs of purchasing the equipment (i.e. are comparable to the depreciation costs of similar equipment).