Common use of Government Grants Clause in Contracts

Government Grants. The Company receives government financial assistance for its investment projects in the form of federal (tax-free) and state (taxable) investment grants. Amounts received or receivable are recognized initially as deferred income in accordance with IAS 20 and reported in the balance sheet as Deferred federal and state investment grants. Grants are transferred to the income statement over the period of use of the assets for which they were received. The amounts recognized as income are reported under Other operating income. Grants are recorded as receivable as soon as the funds flow to the Company or there is reasonable assurance that they will do so.

Government Grants. The Company receives government financial assistance for its investment projects in the form of federal (tax-free) and state (taxable) investment grants. Amounts received or receivable are recognized initially as deferred income in accordance with IAS 20 and reported in the balance sheet as Deferred deferred federal and state investment grants. Grants are transferred to the income statement over the period of use of the assets for which they were received. The amounts recognized as income are reported under Other other operating income. Grants are recorded as receivable as soon as the funds flow to the Company or there is reasonable assurance that they will do so. Repayment obligations of government grants are treated as a change in estimate according to IAS 8.