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What is the accounting treatment of a government grant in form of a low interest loan as against a high interest commercial loan? What is the tax implications for such grant?
in IAS 20 - Accounting for Government Grants by

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Benefit arising from the lower interest rate than the market rate is treated as a government grant and is recognised immediately.

The present value of the loan (financial liability) should be calculated based on both market rate and government rate and the difference will be the grant to be recognized.

This grant need to be accreted to over the loan term using the effective interest method. 

Check out this tutorial on government grants for more details