IAS 20Chapter 3Lesson 1
Government loans: possible forgiveness and below-market rates
Step 1 of 5Learning objectives
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A government loan can become a grant: through the expected forgiveness of the debt, or through the benefit of a below-market rate.
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Learning objectives
- Determine when a forgivable government loan is treated as a grant.
- Calculate the benefit of a below-market loan.
- Place the boundary with the financial instruments standard.