Betekenis van:
straight-line method of depreciation

straight-line method of depreciation

Zelfstandig naamwoord

(accounting) a method of calculating depreciation by taking an equal amount of the asset's cost as an expense for each year of the asset's useful life

Where the costs include depreciation of capital investments with a life of more than one year and a price of more than EUR 500, these depreciation costs shall be considered eligible provided they relate exclusively to the national programme and the eligibility period of the concerned programme phase provided that: For investment in construction and infrastructure these costs are depreciated over 10 years using the straight line method, and for other equipment including informatics equipment 5 years straight line method.
The Commission recalls that, normally, having determined that the benefit is equivalent to the full amount of the financial contribution (in this case, a loan or loan guarantee), the Commission treats it as a ‘non-recurring’ subsidy and allocates it over a period of time corresponding to the normal depreciation of fixed assets in the industry concerned. The Commission uses a straight-line allocation and does not increase the total amount of benefit by using the ‘time value of money’ method; it merely adds interest to each annual allocated portion.