Accounting Guideline on GRAP 1

05 May 2022
Accounting
South African Accounting Academy

This document provides guidance on the bases for the presentation of financial statements. The contents should be read in conjunction with GRAP 1.

GRAP 1 is applicable to all entities preparing their financial statements (and where applicable, consolidated and separate financial statements) on the accrual basis of accounting in accordance with the Standards of GRAP.

Consequently, in presenting financial statements entities should consider GRAP 1 as well as the requirements in other standards.

The standard of GRAP relate to, unless specifically stated otherwise, the following bodies:

Public entities
Constitutional institutions
Municipalities and all other entities under their control
Trading entities and government components applying the standards of GRAP
Parliament and the provincial legislatures
TVET and CET colleges

Click here to download the Guideline:

https://ag.treasury.gov.za/org/tss/Shared%20Documents/Generally%20Recognised%20Accounting%20Practice%20Reporting/Accounting%20Manuals/Accounting%20Guideline%20on%20GRAP%2001%20Issued%20February%202020%20updated%20March%202022.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

You need to assess fair presentation and compliance with the Standards of GRAP.
For financial statements to be fairly presented, the effects of transactions, other events and conditions should be truthfully and accurately represented in accordance with the definitions and recognition criteria for assets, liabilities, revenue and expenses. Fair presentation is achieved by, inter alia, complying with all relevant standards of GRAP.
Non-compliance with GRAP1 may lead to a modified audit opinion.
As an auditor and independent reviewer, you need to consider and assess compliance with GRAP1 and thus you need knowledge of this published guidance on the bases for the presentation of financial statements.

Relevance to Your clients:

GRAP 1 is applicable to all entities preparing their financial statements (and where applicable, consolidated and separate financial statements) on the accrual basis of accounting in accordance with the Standards of GRAP.
These clients should be aware of this published guidance on the bases for the presentation of financial statements.

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