BC1 This Basis for Conclusions summarises the International Accounting Standards Board's considerations in amending IAS 20 Accounting for Government Grants and Disclosure of Government Assistance as part of Improvements to IFRSs issued in May 2008.
BC2 IAS 20 was developed by the International Accounting Standards Committee in 1983 and did not include a Basis for Conclusions. This Basis refers to the insertion of paragraphs 10A and 43 and the deletion of paragraph 37. Those changes require government loans with below‑market rates of interest to be recognised and measured in accordance with IAS 39 Financial Instruments: Recognition and Measurement [IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39. This paragraph refers to matters relevant when IAS 20 was amended in 2008.] and the benefit of the reduced interest to be accounted for using IAS 20.