Guidelines for depreciating scientific and technical equipment published

Following the clarification published in November by the FCT, the Portugal2020 Operational Programs have released technical guidance on the accounting policy applicable to scientific and technical equipment within the scope of R&D activities. These guidelines meet the questions raised by institutions and are the result of FCT initiatives to promote a more appropriate context for accounting for depreciation expenses for this type of equipment. 

In order to be competitive and innovative, research must be supported by state-of-the-art equipment, which is subject to severe technological obsolescence. With this in mind, SCTN entities may adopt different accounting methods:

 i) adjust the rate of depreciation of the equipment to its actual level of usefulness, provided that this is validated by the Statutory Auditor (ROC) or Certified Accountant (CC) and thus recorded in the accounts; 

ii) define the useful life of the equipment according to its expected use, provided that it is justified on a case-by-case basis by the entity's management body and thus recorded in the accounts.

This understanding is the result of an analysis by the FCT and the Operational Programs of the opinion of the Accounting Standards Committee, following doubts and requests raised by the scientific community.