Subject: Depreciation of Fixtures, Fittings, Machinery & Equipment's Affixed or Installed in Banks Owned Building

With reference to Oman Central Bank Circular No. BM369/1983 dated March 14, 1983, on depreciation of real estate owned by licensed banks, the Board of Governors of the Central Bank of Oman has decided in its meeting held on September 7, 1988 to amend Section 3 of said Circular, as follows:

• a) Fixtures, fittings, machinery and equipment which are fixed to or installed in bank’s owned building shall be depreciated over a period of ten (10) years from the date said items are fixed or installed. In the case where such items are affixed to or installed in a building under construction, then they shall be depreciated from the date of completion of the building.

• b) Licensed banks who have been taking more than the said percentage (10% annually) can reduce the depreciation charge to 10% of the remaining book value as of 1988.