30 Government grants

In accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, government grants are only recorded if it is reasonably certain that the conditions attached to the grants will be fulfilled and the grants actually awarded. The Group received subsidies from various public bodies within the scope of government economic stimulus programs, for example for research and development. Investment grants and investment subsidies for assets for which it is sufficiently certain that the associated conditions are being met and that they will be awarded, reduce the acquisition and production costs of the related assets. Subsidies for investments such as investment subsidies grants and tax-free investment grants for assets are recognized through profit or loss over the useful life of the subsidized assets (as a reduction of the depreciation on the subsidized property, plant and equipment). Grants related to income are offset against the corresponding expenses in the period in which the expenses are incurred.

The subsidies for assets/investments relate to non-performance-related research and development grants at the Zuidland site in the Netherlands. Other expense-related subsidies mainly relate to government incentives to increase revenue in China.