ASB: ED 214: Exposure Draft of the Proposed Standard of GRAP on Social Benefits – Limited Scope Amendment

ASB: ED 214: Exposure Draft of the Proposed Standard of GRAP on Social Benefits – Limited Scope Amendment

• 23 September 2025
• Accounting
• South African Accounting Academy

Summary:
The Accounting Standards Board (ASB) has released the Exposure Draft of the Proposed Standard of GRAP on Social Benefits – Limited Scope Amendments (ED 214) for comments, to enable the Board to improve and amend the Proposed Standard of GRAP on Social Benefits (ED 205). 
Article:
The Board’s analysis of the comment received on the proposed Standard of GRAP on Social Benefits (ED 205) showed the proposed principles were by and large supported.

Amendments to ED 205 from comment received clarify the principles and provide further guidance. In one area, the Board’s analysis resulted in a significant change to the proposals of ED 205. The Board published ED 214 to consult stakeholders on this change.

Some of the significant changes include:

• Impact of the verification of substantive ongoing eligibility criteria of social benefit liabilities
  • Recognition versus measurement
  • Application of the impact of the verification of substantive ongoing eligibility criteria to social security insurance benefit liabilities.
• A table has been provided to explain the change proposed in this ED compared to ED 205.

Comments are due by 14 November 2025.

The Board will analyse the comment on ED 214 at its March 2026 meeting.

Access the Executive Summary (4 pages) at https://www.asb.co.za/wp-content/uploads/2023/08/ED-214-Executive-summary.pdf 

Click here to download the 34-page Exposure Draft:

https://www.asb.co.za/wp-content/uploads/2023/08/ED-214-Proposed-Standard-of-GRAP-on-Social-Benefits_Ltd-scope.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 seeks comment on the proposal to amend the requirements of ED 205 so that the verification of substantive ongoing eligibility criteria is considered in measuring social assistance benefit liabilities and is not considered in measuring social security insurance benefit liabilities.

Relevance to Your clients:

• Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.
• This exposure draft seeks comment on the proposal to amend the requirements of ED 205 so that the verification of substantive ongoing eligibility criteria is considered in measuring social assistance benefit liabilities and is not considered in measuring social security insurance benefit liabilities.
   

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