G33 Government grants
Sandvik has received various forms of government grants in countries where the Group operates of SEK 46 million (155) during 2022. The main part of the received amount of the grants in 2022 has been recognized as a reduced cost to which the grant is attributable to, whereof in 2021 it was about half of the amount.
In 2022, 76 percent of the government grants are related to R&D projects and development costs. The remaining 24 percent are mainly related to personnel costs. In 2021, the main part was related to personnel costs, and the other part mainly to R&D projects.
The majority of the grants have no unfulfilled conditions or contingencies attached to the grants.
Accounting principles
Government grants are recognized as deferred income in the balance sheet when there is reasonable assurance that the grant will be received, and that the entity will comply with the conditions attached to them. Grants are recognized in profit or loss for the year in the same way and over the same periods as the related costs that they are intended to compensate, on a systematic basis.
Grants related to assets are presented by deducting the grant from the carrying amount of the asset.