CERTYNEX IFRS ACADEMY

A government loan will be waived if the entity keeps operating on the site for five years. Under what condition does IAS 20 treat it as a grant?

From the grant of the loan, whatever the likelihood that the entity will meet the waiver conditions provided for.

When the lending body has formally notified the waiver to the entity.

When there is reasonable assurance that the entity will meet the conditions for waiver.

When the interest rate on the loan is below the market rate.