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PSAB Matters Article – When Loans Are Really Grants

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Jul 30, 2015

On July 30, 2015, the Public Sector Accounting Board (PSAB) released an article that provides an overview of Section PS 3050, Loans Receivable.

Public sector entities lend money primarily to achieve policy objectives (for example, to support regional development or give economic assistance). In some cases, public sector entities make loans and provide the borrower with future funding to repay the loan. In other cases, public sector entities provide loans with concessionary terms or forgiveness clauses. Finally, a public sector entity could simply forgive the loan.

Section PS 3050, Loans Receivable, establishes standards on how to account for and report loans receivable in the financial statements of public sector entities.

Review the article.

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