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Question · Benefit of a below-market loan

Maurelle obtains EUR 2,000,000 from a public fund at a rate set by law that is well below what a bank would grant it. The finance director proposes to record the loan at 2,000,000 and to identify no benefit, on the grounds that the rate is statutory and not negotiated. In four to six sentences, justify the treatment you would adopt at initial recognition.

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