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government loans to banks at subsidised rates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › government loans to banks at subsidised rates

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  • August 31, 2022 at 7:02 pm #664780
    myk673
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    If a government lends money to financial institutions at rates below prevailing market rates. How to account for the benefit received by these financial institutions?

    September 1, 2022 at 7:55 pm #664896
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    You wouldn’t see this scenario in the exam, so I’d not worry about it. I think that you’d find it isn’t anywhere near as complicated as you would think. Look up IAS 20 and you should find your answer.

    Thanks

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