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ASB: Approved amendments Directive 5 GRAP Reporting Framework
- 21 October 2024
- Financial Reporting
- South African Accounting Academy
Summary:
The Accounting Standards Board (ASB) has approved amendments to Directive 5 on Determining the GRAP Reporting Framework 2025/2026.
Article:
Directive 5 determines the GRAP Reporting Framework for a particular reporting period – the latest Directive 5 was updated in September 2024 for 2025/2026.
The Appendices list the standards and pronouncements that form the GRAP Reporting Framework for that particular reporting period. The Appendices are updated each year to include the Reporting Framework for the upcoming reporting period.
Entities have to apply Directive 5 and the list of pronouncements in the applicable Appendix to prepare financial statements for a particular reporting period.
The latest Appendix 1: 1 April 2025 forms part of this Directive. This appendix lists the standards and pronouncements that are the GRAP Reporting Framework for public entities, constitutional institutions, Parliament and the Provincial Legislatures, Municipalities and Municipal Entities, Trading Entities, Public TVET Colleges and Public CET Colleges effective for financial periods commencing on or after 1 April 2025 and should be applied as set out in paragraphs .05 and .06 of this Directive.
The Basis of Conclusions sets out the amendments for the Reporting Framework 2025/2026 (as well as the previous years).
At the latest Board meeting, a key discussion point was the consideration of stakeholder feedback (following the Exposure Draft (ED) that was issued in April 2024) on amendments to the Directive on Determining the GRAP Reporting Framework and the subsequent approval of the final Directive.
Stakeholders raised some key issues, which are set out in the newsletter accessible at https://mailchi.mp/d23c591019c0/accounting-standards-board-newsletter-3.
The Board’s decisions aim to ensure the appropriate application of the Standards of GRAP. These amendments reflect the Board’s commitment to maintaining clear and comprehensive guidance within Directive 5.
Click here to download the 23-page Final Directive 5:
https://www.asb.co.za/wp-content/uploads/2023/08/Directive-5-Reporting-Framework-202526-CLEAN.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.
- The exposure draft on Directive 5 clarifies certain principles and determines the GRAP Reporting Framework for a particular reporting period.
Relevance to Your Clients:
- Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.