6.3.3. Grants
Accounting policies
Grants
The Group receives grants related to assets, receivable on condition that the Group purchases, produces, or otherwise obtains non-current assets.
Grants related to assets are recognised in the statement of financial position under grants (non-current portion) and other liabilities (current portion), and subsequently taken – through equal annual charges – to profit or loss throughout the expected useful life of the assets.
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| Grants | 2016 | 2015 |
|---|---|---|
| Grants related to assets, including: | 856 | 882 |
| Kosakowo UGSC construction | 89 | 98 |
| Wierzchowice UGS extension | 443 | 464 |
| Strachocina UGS extension | 57 | 60 |
| Husów UGS extension | 31 | 33 |
| Construction of gas distribution systems in new areas and upgrades of existing distribution networks | 164 | 147 |
| Other | 72 | 80 |
| Total | 856 | 882 |
| Including non-current | 815 | 843 |
Grants related to assets
Group companies are executing projects for which EU co-financing has been obtained.
The largest projects are carried out by the Parent and involve extension of the gas storage capacities to ensure proper operation of the gas distribution system. In the current reporting period, no new co-financing was granted to PGNiG S.A. for those projects. In 2016, PGNiG S.A. received PLN 1.8m under a grant for the financing of the ‚LNG-based conversion of Ełk and Olecko from propane-butane to E-gas’ project.
In the current period, Polska Spółka Gazownictwa Sp. z o.o. received a grant of PLN 22m from the European Regional Development Fund (ERDF) under a programme involving construction of gas distribution systems in areas where no such infrastructure had existed before, and upgrades of existing distribution networks.
