30.12.2000 Official Journal of the European Communities L 336/75 COMMISSION REGULATION (EC) No 2909/2000 of 29 December 2000 on the accounting management of the European Communities' non-financial fixed assets THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities ('), as last amended by Council Regulation (EC, ECSC, Euratom) No 2673/1999 (3), and in particular Articles 65 to 72 thereof, Having regard to Commission Regulation (Euratom, ECSC, EC) No 341893 of 9 December 1993 laying down detailed rules for the implementation of certain provisions of the Financial Regulation of 21 December 1977 (°), as last amended by Decision 2000/716/EC (%), and in particular Article 21 thereof, Having consulted the Accounting Officers of the European Parliament, the Council, the Court of Justice, the Court of Auditors, the Economic and Social Committee, the Committee of the Regions and the European Ombudsman, HAS ADOPTED THIS REGULATION: TITLE I SCOPE Article 1 Scope in relation to subject matter 1. This Regulation shall apply to accounting operations relating to tangible and intangible fixed assets which form part of the property belonging to the Communities. 2. All tangible and intangible fixed assets which, being intended to serve the activities of the Communities on a lasting basis within the meaning of Article 65 of the Financial Regula- tion and Article 130 of Regulation (Euratom, ECSC, EC) No 3418/93, are to be entered in the inventory and shall form part of the property belonging to the Communities and shall be entered in the Communities' balance sheet. Atticle 2 Institutional scope 1. This Regulation shall be applied by the Accounting Offi- cers of all the Institutions. 2. The Institutions shall be those listed in Article 12 of the Financial Regulation. () O] L 356, 31.12.1977, p. 1 () O] L 326, 18.12.1999, p. 1 () O] L 315, 16.12.1993, p. 1 () O] L 290, 17.11.2000, p. 5 2. TITLE 1I STRUCTURE OF THE BALANCE SHEET Article 3 Structure of the balance sheet The fixed assets covered by this Regulation shall be entered on the assets side of the balance sheet under the heading ‘fixed assets’ and set out as follows: — intangible assets, — tangible assets: — land and buildings, — plant, machinery and tools, — furniture and vehicle fleet, — computer hardware, — finance leases and similar entitlements, — other tangible assets, — tangible assets in course of construction, advances and payments on account in respect of tangible assets. TITLE III PROVISIONS RELATING TO THE DIFFERENT BALANCE SHEET ITEMS Chapter 1 General provisions Atrticle 4 Finance leases and similar entitlements 1. The classification of leases as fixed assets within the meaning of this Regulation shall be based on the extent to which the risks and rewards incident to ownership of the leased asset lie with the lessor or the lessee and shall depend on the substance of the transaction rather than the form of the contract. 2. A lease shall be classified as a finance lease or similar entitlement within the meaning of this Regulation if it transfers substantially the risks and rewards incident to ownership of the asset to the lessee. 3. Risks shall include the possibilities of losses from under- utilisation of capacity, obsolescence or changes in cost-effec- tiveness due to changing economic conditions. Rewards may be represented by the expectation of profitable operation over the asset's economic life and of gain from appreciation in value or realisation of a residual value.