9.4. 86 Official Journal of the European Communities No C 80/9 
II 
(Preparatory Acts) 
COURT OF AUDITORS 
OPINION No 1/86 
of the Court of Auditors of the European Communities on the proposal for a Council 
Regulation amending Regulation (EEC) No 1883/78 on the general rules for the financing of 
interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section 
(86/C 80/20) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 209 
thereof, 
Having regard to the proposal by the Commission ('), 
Having regard to the Council's request for an 
opinion (2), 
Whereas the Commission proposal aims to amend the 
procedures for optional depreciation provided for in 
Article 8, paragraph 2, of Regulation (EEC) No 
1883/78; 
Whereas on several occasions (3) the Court has criticised 
the valuation of intervention stocks at the end of the 
financial year, such criticisms concerning both the pro­
cedures for implementing the general rule of valuation at 
purchase price and the conditions under which, in 
exceptional circumstances, the valuation may be made at 
a different price; 
Whereas the Court has criticised the implementation of 
such valuations when they have been made at less than 
the purchase price, having no regard for objectivity or 
consistent methods, and solely on the basis of the avail­
ability of appropriations at the end of the financial year, 
which has resulted in an arbitary allocation of charges to 
the different financial years; 
0) Doc. COM(85) 703 final of 11. 12. 1985. 
O Decision of 27. 1. 1986. 
(3) 1978 Annual report, OJ C 326, 31. 12. 1979, paragraphs 
2.21-2.23, pages 24-25. 
1980 Annual report, OJ C 344, 31. 12. 1981, paragraph 
4.33, pages 59-61. 
1981 Annual report, OJ C 344, 31. 12. 1982, paragraphs 
4.20-4.22, page 39. 
1982 Annual report, OJ C 357, 31. 12. 1983, paragraphs 
4.44-4.45, page 47. 
Stuttgart report, OJ C 287, 24. 10. 1983, paragraph 2.2.8, 
page 6. Whereas this practice has been made possible by the 
optional nature of the provision, and sound financial 
management would be better ensured if the valuation 
options set out in Article 8 of Regulation (EEC) No 
1883/78 were replaced by a fixed rule, namely by the 
rule of valuation at either the purchase price or the 
disposal price, whichever is the lower; 
Whereas, however, the Commission's proposal, which 
aims to abolish the rule limiting depreciation to the 
average of the purchase price and the disposal price (ie. 
to a maximum of 50 % of the loss in value) and to 
introduce the option of making depreciations throughout 
the year, is a first step in the right direction, since it 
makes it possible for a valuation to be made on the basis 
of more realistic values than those currently prescribed, 
HAS ADOPTED THE FOLLOWING OPINION: 
The Court, whilst reiterating the reservations it has pre­
viously expressed with regard to the defects inherent in 
the valuation mechanism and in the implementation of 
Regulation (EEC) No 1883/78, has no objections to the 
Commission's proposal. 
This opinion was adopted by the Court of Auditors at its 
meeting on 6 March 1986. 
For the Court of Auditors 
Marcel MART 
President