CERTYNEX IFRS ACADEMY

Ostrane receives EUR 1,000,000 from a public fund, repayable in five years, with annual interest of 1%. Case assumption: a comparable loan would carry a market rate of 5%. Measured under IFRS 9 at initial recognition, the loan is worth EUR 826,821. Which initial accounting is consistent with IFRS 9 and IAS 20?

Loan recorded at EUR 1,000,000, the interest rate of 1% being the one set by the contract.

Loan recorded at EUR 826,821 under IFRS 9, with the benefit of EUR 173,179 treated as a grant.

Loan recorded at EUR 826,821, with the EUR 173,179 difference taken directly to equity.

Loan recorded at EUR 1,000,000, with a benefit of EUR 173,179 recognised in addition as deferred income.