ERICs – though their juridical status is clearly defined by the European Commission – face a multiplicity of varying European fiscal and accounting regimes for the recording of their development activities. This makes accounting phases of an ERIC more complex. Learn more on the Accounting page.

ERICs are legal entities with legal personality and full legal capacity recognised in all EU Member States. The financial statements of ERICs should provide relevant information to meet the common interest of Member States and the stakeholders. Learn more on the Financial Reporting page.

Terms such as profit, and loss, which permeate the business accounting standards, are not suitable for ERICs. In particular, the concentration indicator of performance confuses the meaning behind ERICs financial reporting which should be focused on the European Research and development cohesion objectives. Learn more on the Reporting to stakeholders page.

ERICs qualify for VAT and excise duties exemptions being an international organization related to excise duties. Learn more on page VAT and Excise duty exemption.



Narrative reporting is essential in ERICs reporting. Narrative reporting describes the non-financial information included in annual reports to provide a broad and meaningful picture of activities, performance, impact and future prospects.

Non-financial information for ERICs is as important as financial information in the decision-making process: both pieces of information contain valuable insights to make a decision, evaluating potential alternatives, choosing the best option based on existing alternatives, monitoring implementation strategies and checking progress periodically.

Reporting to stakeholders

Consistent accounting methods ensure that the financial reports will all hold a similar structure from one accounting period to the next. This makes it easier for the public stakeholders to compare the performance of the ERICs over different financial years.

Financial Reporting

When ERICs prepare a Statement of Cash Flows, they should show to the stakeholders the cash received for operating purposes separately from the non-cash in-kind contributions received.  It would be appropriate to specify the use of the in-kind contributions.

Revenues and expenses recording

ERICs report to a wide range of stakeholders with whom the ERICs interact and who have differing needs for accountability. Although the Members States are seen as the primary users of ERICs activities and financial information, the stakeholder list is much wider and includes the European Commission, the host organisation, employees, other European research institutions, partner organisations, regulators, other investors, suppliers.

Reporting to stakeholders

A well-formatted financial report provides accurate and relevant information with enough context for the board to thoroughly understand what’s going on with your organization financially. To be strategically useful, the reports should show numbers in context so ERIC Assembly Members could answer the following questions:

  • What was the total revenue/expenses of last year?
  • What is the annual budget for this year and what are the variances with respect to the budget?
  • How do we expect to end the year and how does that compare to the approved budget? What are the reasons for the significant variances?
Reporting to stakeholders

Residual Cash carry-over typically does not return to members of an ERIC. In case of liquidation, ERIC assets should be transferred to another ERIC, so neither the Member States, nor the current beneficiaries may be the residual holders. However, it is often the case that the equity of an ERIC comprises a number of funds subject to different conditions as a consequence of grants or fees received for specific purposes. Read more.

Revenues and expenses recording

When planning for the use of tax exemptions, it is important that a detailed track record is kept in the ERIC accounts. Make sure to inform the local tax authority of the start of activities of your ERIC. Check the ERIC Statutes and the integrated internal regulations detailing correct procedures for tax exemptions. Most Statues have limits on the amounts allowed or on the extent of application.

VAT and Excise duty exemption


Anne-Charlotte Fauvel
Head of EU Affairs, EATRIS ERIC
annecharlottefauvel (at)