ASB: Amendments to GRAP 109

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ASB: Amendments to GRAP 109

• 11 August 2026
• Accounting
• South African Accounting Academy

Summary:
The Board of the Accounting Standards Board (ASB) has approved final amendments, and has issued these proposed amendments to GRAP 109 on Accounting by Principals and Agents.

Article:

Proposed amendments to GRAP 109 were issued (ED 215) to address feedback from GRAP 109 Post-implementation review. Refer to our previous Alert dated 29 January 2026

No substantive amendments have been proposed to GRAP 109, and these aim to:

• clarify existing principles to assess if arrangement is a principal-agent arrangement
• explain approach to conclude on nature of arrangements
• propose disclosures.

In summary, the following amendments are proposed:

• New headings and sub-headings to make assessment approach clearer
• Consolidate guidance on similar topics
• Amendments in 3 areas:

• Guidance on binding arrangements
• Assessing if definition of a principal-agent arrangement exists
• Disclosure requirements

What’s next?

The Minister of Finance is to approve the effective date for implementation of amendments. Once the effective date has been determined, entities may early adopt.

Click here to download the 49-page document (with tracked changes):

https://www.asb.co.za/wp-content/uploads/2023/08/Amendments-to-GRAP-109-Accounting-by-Principals-and-Agents.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.
• You should be aware of the latest publications issued by the relevant board, e.g. ASB.
• You should be aware of changes to Standards of GRAP – and in this case, the outlined principles to be used by an entity to assess whether it is party to a principal-agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement.

Relevance to Your clients:

• Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.
• You should be aware of changes to Standards of GRAP – and in this case, the outlined principles to be used by an entity to assess whether it is party to a principal-agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement.

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