G33 Government grants

Sandvik has received various forms of government grants in countries where the Group operates of SEK 161 million (521) during 2021. About half of the amount of the received grants in 2021, have been recognized as a reduced cost to which the grant is attributable to (in 2020 it was the main part of the received amount). The main part of the amount is related to personnel costs. The other part of the received grants in 2021 was mainly related 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.