{
  "url": "https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-3/division-3.5/division-3.5.3",
  "json_url": "https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-3/division-3.5/division-3.5.3.json",
  "legislation": "eudn/2012/838",
  "legislation_title": "Commission Decision of 18 December 2012 on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities and under the Seventh Framework Programme of the European Atomic Energy Community for nuclear research and training activities (Text with EEA relevance) (2012/838/EU, Euratom) (revoked)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2012-838",
  "path": "annex/division/2/division/3/division/3.5/division/3.5.3",
  "kind": "division",
  "number": "3.5.3",
  "heading": "Thresholds",
  "text": "According to the results obtained for each of the abovementioned ratios, the following quotes are given:\nThe following rules are applied for the special cases where the ratio is negative, or contains a zero denominator or numerator:\nLiquidity:\nIf (Current assets-Stock-Debtors after one year) ≤ 0, the result shall be 0 with weak qualifications. The value for (Current assets-Stock-Debtors after one year) cannot be negative.\nIf the short term debt (bank and non-bank) = 0, and the above (Current assets-Stock-Debtors after one year) is not zero, the result shall be 2 with good qualifications.\nProfitability (1):\nIf GOP ≤ 0, the result shall be 0 with weak qualifications.\nIf the Turnover = 0, the Operating income shall be used for the calculation.\nIf the Operating Income = 0 or negative, the result shall be 0 with weak qualifications.\nTurnover cannot be negative.\nSolvency:\nIf Equity = 0, the result shall be –1 with weak qualifications in all cases.\nIf Total debt = 0 and the Equity is positive, the result shall be 0 with good qualifications.\nIf Total debt = 0 and the Equity is negative, the result shall be -1 with weak qualifications.\nThe calculation of the Equity flag is based on the same principles, but it will be considered ‘positive’ if the indicator ‘Total debt/Equity’ is superior or equal to 0 and inferior or equal to 10.",
  "extent": "E+W+S+N.I.",
  "status": "repealed",
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Decision revoked (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Revocation and Sunset Disapplication) Regulations 2023 (S.I. 2023/1143), reg. 2(3), Sch. 2 Pt. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2012/838/annex/division/2/division/3/division/3.5/division/3.5.3",
    "retrieved_at": "2026-11-01T15:15:13.177377+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}