CERTYNEX IFRS ACADEMY

A public authority pays EUR 80,000 to an entity on condition that it acquires and operates a production machine. How does IAS 20 describe this grant?

A grant related to income, because it is paid in euros.

A grant related to assets, because its main condition is the acquisition of a long-term asset.

A form of government assistance that is not a grant, because the entity simply receives an economic benefit from the government.

A repayable loan, because the entity will have to report on how the funds are used.