Amendments to GRAP 1 to “cut clutter” in financial statements

14 October 2022
Accounting
South African Accounting Academy

During 2018, the ASB undertook a project, based on international developments at that time, to improve financial reporting disclosures, and reduce clutter in the financial statements.

This resulted in amendments to GRAP 1 on Presentation of Financial Statements to clarify the application of materiality to all parts of the financial statements. These amendments will become effective for periods commencing on or after 1 April 2023 but may be early adopted.

The following is discussed:

Clarifying materiality and aggregation
How should materiality be applied in presenting information in the statements of financial performance and position?
Flexibility on the structure of financial statements

The amendments to GRAP 1 removed guidance and examples on the identification of significant policies that were perceived as being unhelpful.

Click here to download the Amended GRAP 1:

https://www.asb.co.za/wp-content/uploads/2022/04/Amendments-to-GRAP-1.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

You need to assess fair presentation and compliance with the Standards of GRAP.
Non-compliance with GRAP standards may lead to a modified audit opinion.
Your clients that prepare and present financial statements under the accrual basis of accounting shall apply this Standard including the amendments resulting in the latest GRAP 1 on Presentation of Financial Statements.

Relevance to Your clients:

An entity that prepares and presents financial statements under the accrual basis of accounting shall apply this Standard including the amendments resulting in the latest GRAP 1 on Presentation of Financial Statements.

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