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ASB: ED207 on GRAP 108 – Statutory Receivables PIR
- 12 February 2024
- Accounting
- South African Accounting Academy
The review document states that:
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‘entities in the public sector operate within a highly regulated environment’
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the term ‘statutory receivable’ refers to taxes, fines, penalties, appropriations, grants, and fees charged in terms of legislation or similar means
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not all transactions undertaken by a public entity arise from statute, and that
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many ‘arise from contracts that grant an entity a contractual right to receive cash or another financial instrument’.
Except for trading entities, GRAP 108 became effective for financial years commencing on or after 1 April 2019. Trading entities applied GRAP 108 from 1 April 2021.
The Board granted a three-year transitional period for the classification and measurement of statutory receivables. When an entity elected to apply for the transitional relief, it was not required to comply with the classification, recognition, measurement and related disclosure requirements. The transitional period ended on 31 March 2022 for all entities other than trading entities. Trading entities can apply for the relief until 31 March 2024.
Focus areas of the PIR are set out and discussed.
The gazetted notice calls for input by 27 October 2024 on:
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whether the standard is achieving its intended objective, and
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any issues experienced in practice.
You can access the Government Gazette notice at https://www.gov.za/sites/default/files/gcis_document/202402/50071bn547.pdf
Click here to download the Exposure Draft:
Relevance to Auditors, Independent Reviewers & Accountants:
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You need to assess the fair presentation and compliance with the Standards of GRAP.
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Non-compliance with GRAP standards may lead to a modified audit opinion.
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You should be aware of the latest publications issued by the relevant board, e.g. ASB.
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The PIR is an opportunity for the Board to assess the impact of the requirements of a Standards of GRAP on preparers and users of financial statements.
Relevance to Your Clients:
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Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.