Garnier receives a government loan of 800,000 at a below-market rate. Measured under IFRS 9 at initial recognition, the loan is worth 658,162. Case convention: the benefit is treated as a grant and presented as deferred income, linked to the costs that the loan finances. Record the initial entry.
- Proceeds of the government loan
- 800,000
- Initial value of the loan under IFRS 9
- 658,162