IAS 20Chapter 12Lesson 1
At the boundaries: IAS 16, IFRS 9 and IAS 23
Step 1 of 6Learning objectives
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A grant affects other standards: the cost of a fixed asset (IAS 16), the measurement of a loan (IFRS 9) and the base of borrowing costs that can be capitalised (IAS 23).
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Learning objectives
- Explain the effect of a deducted grant on the cost of a fixed asset and on depreciation.
- Place the boundary between IAS 20 and IFRS 9 for a government loan.
- Analyse the effect of an asset grant on the capitalisation base of borrowing costs.