No C 166/6 Official Journal of the European Communities 25. 6. 88 
reaffirms its objections of principle to such a system, 
which is in conflict with the principle of the annual 
nature of the budget and offers no improvement to 
the control of expenditure effected by the Member 
States; 
(d) The Court approves the principle of the codification, 
within the Financial Regulation, of proposals relating 
to the clearance of accounts procedure; it never­
theless regrets that the proposal seeks to sanction the 
extension of this procedure's time limits and does not 
seek, on the contrary, to affirm the objective of 
control of the management of the EAGGF 
Guarantee Section on the basis of greater reconcili­
ation of the accounts; (e) The Court invites the legislator to supplement the 
proposal in such a way as to ensure that the revenue 
and expenditure account and the balance sheet are 
transmitted at the earlier date of 1 March. 
This Opinion was adopted by the Court of Auditors at 
its meeting of 19 May 1988. 
For the Court of Auditors 
Marcel MART 
President 
OPINION No 2/88 
of the Court of Auditors of the European Communities on a proposal for a Council Regulation 
amending Council Regulation (EEC) No 1883/78 laying down general rules for the financing of 
interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section 
(depreciation) 
(88/C 166/04) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 206 (a) 
thereof, Whereas in the case of products bought in from 1989 
onwards the proposal envisages the introduction of a 
legal obligation to value the products at the end of the 
financial year at the foreseeable disposal price and, 
accordingly, to introduce a general rule for depreciating 
most of the value (70 %) of these products at the time of 
buying in and the balance at the year end; 
Having regard to Council Regulation (EEC) No 
1883/78 of 2 August 1978 ('), 
Having regard to Council Regulation (EEC) No 
1334/86 of 6 May 1986 (2), 
Having regard to the proposal from the Commission (3), Whereas in its Opinion No 1/86 (5) the Court did not 
put forward any objections regarding the Commission 
proposal to facilitate the financial depreciation of stocks, 
but did reiterate its previous reservations concerning the 
defects inherent in the provisions of Regulation (EEC) 
No 1883/78 on this matter; 
Having regard to the Council's request for the Court's 
opinion (4), 
Whereas the essential object of the proposal is to value 
stocks of agricultural products at the moment they are 
bought in at the foreseeable disposal price and thereby to 
eliminate the "burden of the past", which constitutes a 
charge on future budgets; Whereas in its Annual report concerning the financial 
year 1986 (6) the Court of Auditors repeated its obser­
vation regarding the serious deficiency in the accounting 
system applied under the current arrangements for inter­
vention stocks and called for the introduction of 
obligatory systematic rules for the financial depreciation 
of stocks; 
(•) OJ L 216, 5.8.1978, p. 1. 
O OJ L 119, 8.5.1986, p. 18. 
(J) Doc. COM(88) 195 final of 19.4.1988. 
(4) Letter dated 29.4.1988 (Council decision of 25.4.1988). (*) OJ C 80, 9.4.1986. 
(6) OJ C 336, 15.12.1987, p. 50. 
25. 6. 88 Official Journal of the European Communities No C 166/7 
Whereas, in the case of stocks created prior to the 1989 
financial year, the proposal provides for financial de­
preciation in stages at the beginning of the financial year 
according to the budgetary appropriations available so 
that the book value of these stocks reaches the fore­
seeable disposal price level by 1992; 
Whereas, furthermore, because of the Council's request 
for urgent consideration, the Court is unable to give its 
opinion on all the technical aspects of the proposal; 
whereas it wishes, however, to draw attention to its 
previous observations regarding the procedures for reim­
bursement of storage costs (7) by the Guarantee Section 
of the EAGGF; 
O OJ C 321, 15.12.1986, p. 45 ff. 
OJ C 336, 15.12.1986, pp. 50 and 52. HAS ADOPTED THIS OPINION: 
(a) the Court of Auditors welcomes the new system of 
valuing stocks bought into intervention at the fore­
seeable disposal price, with effect from 1989 and in 
the context of each financial year; 
(b) the Court is in favour of progressive financial de­
preciation of stocks created prior to the financial 
year 1989, in so far as it is a means of reducing the 
burden of the past in this sector. Nevertheless, it 
hopes that the special system applicable to these old 
stocks will be replaced as soon as possible by a single 
method of depreciation applicable to all stocks. 
This opinion was adopted by the Court of Auditors at a 
meeting held on 19 May 1988. 
For the Court of Auditors 
Marcel MART 
President 
OPINION No 3/88 
of the Court of Auditors of the European Communities on a proposal for a Council Regulation 
amending Regulation (EEC) No 729/70 on the financing of the common agricultural policy, as 
last amended by Regulation (EEC) No 3183/87 of 19 October 1987 introducing special rules 
for the financing of the common agricultural policy 
(88/C 166/05) 
THE COURT OF AUDITORS OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 206a 
thereof, 
Having regard to the Financial Regulation of 21 
December 1977 applicable to the general budget of the 
European Communities ('), 
Having regard to Council Regulation (EEC) No 729/70 
of 21 April 1970 on the financing of the common agri­
cultural policy (2), 
Having regard to Council Regulation (EEC) No 
3183/87 of 19 October 1987 introducing special rules for 
the financing of the common agricultural policy (3), 
Having regard to the Commission proposal of 25 April 
1988 (4), 
Having regard to the request, made by the Council on 4 
May 1988 and received by the Court on 11 May 1988, for the opinion of the Court of Auditors on this 
proposal, 
Whereas by its opinion (1/88) of 19 May 1988, the 
Court has already expressed its objections to the 
deferred payment of advances to the Member States 
being made a definitive, formal arrangement, 
HAS ADOPTED THIS OPINION: 
The Court cannot give a favourable opinion of the 
proposal in question for the reasons given in 
subparagraph (c) of its Opinion No 1/88 of 19 May 
1988. 
This opinion was adopted by the Court of Auditors at its 
meeting on 1 June 1988. 
For the Court of Auditors 
Marcel MART 
President 
(') OJ L 356 of 31.12.1977, p. 1. 
O OJ L 94 of 28.4.1970, p. 13. 
(») OJ L 304-of 27.10.1987, p. 1. 
(4) Doc. COM(88) 230 final.