# Commission Delegated Regulation (EU) No 480/2014 of 3 March 2014 supplementing Regulation (EU) No 1303/2013 of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund, Article 19: Discounting of cash flows(Seventh subparagraph of Article 61(3) of Regulation (EU) No 1303/2013)

Extent: E+W+S+N.I.

1. Only cash flows to be paid out or received by the operation shall be taken into consideration when calculating costs and revenue. Cash flows shall be established for each year in which they are paid out or received by the operation over the reference period referred to in article 15(2).
2. Non-cash accounting items such as depreciation, any reserves for future replacement costs and contingency reserves shall be excluded from the calculation.
3. Cash flows shall be discounted back to the present using a financial discount rate of 4 % in real terms as an indicative benchmark for public investment operations co-financed by the ESI Funds funded by support for rural development or support under Regulation 508/2014.
4. Member States The relevant authority may use a financial discount rate other than 4 % if they provide a justification for that benchmark and ensure it is used consistently across similar operations in the same sector.
5. Values other than 4 % may be justified on the grounds of:
(a) the Member State's constituent nation’s specific macroeconomic conditions and international macroeconomic trends and conjunctures; or
(b) the nature of the investor or the implementation structure, such as public private partnerships; or
(c) the nature of the sector concerned.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Source: https://www.legislation.gov.uk/eur/2014/480/article/19 (the official version)
Page: https://openlegislation.uk/eu-regulation-2014-480/article-19
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.