ASB: Updated FAQs on the Standards of GRAP

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ASB: Updated FAQs on the Standards of GRAP

• 26 June 2025
• Accounting
• South African Accounting Academy

Summary:

The Accounting Standards Board (ASB) has published an updated Frequently Asked Questions (FAQs) on the Standards of Generally Recognised Accounting Practice (GRAP).

Article:
These FAQs were originally issued in February 2011 and previously updated in March 2024. Refer to our previous alert dated 10 March 2025 for prior update details

The ASB has completed its research on the issues and needs of stakeholders in the local environment with respect to measuring assets and liabilities. The research will be used to set the landscape for the development of a Standard of GRAP on Measurement.

The Standards of GRAP apply only to material items. Consequently, the FAQs have been drafted on the basis that a particular issue is material. When considering the FAQs, entities should apply judgement in determining whether an issue outlined in the FAQs is material to its operations.

The questions and responses focus on issues that are of interest to public entities, constitutional institutions, municipalities, municipal entities, Parliament and the provincial legislatures, trading entities and Public Further Education and Training Colleges collectively called “entities” in this document (unless indicated otherwise).

Minor issues have been addressed in amending and developing the FAQs. Below is a summary of these issues and the FAQs that respond to it.

The following FAQs have been revised:

• FAQ 3.9 clarifies that the impairment calculation in terms of GRAP 21 and GRAP 26 is not expected to result in zero or a nominal value.
• FAQ 5.3 is expanded to included guidance on accounting for concessionary leases for lessees.

The following FAQ has been added:

• FAQ 3.20 explains how entities should assess for impairment in terms of GRAP 21 and GRAP 26.

The mark-up version of these FAQ’s on Standards of GRAP can be accessed at https://www.asb.co.za/wp-content/uploads/2023/08/FAQs-on-Standards-of-GRAP-Updated-20-May-2025-mark-up-FOR-BACKGROUND-INFORMATION.pdf 

Click here to download the 149-page document:

https://www.asb.co.za/wp-content/uploads/2023/08/FAQs-on-Standards-of-GRAP-Updated-20-May-2025.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 questions and responses outlined in this document are based on queries commonly received by the Secretariat, the AGSA and the OAG and have been compiled to assist preparers of the financial statements.  The questions and responses provide a summarised analysis of topical issues – even though it is not comprehensive.

Relevance to Your clients:

• Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.
• The questions and responses focus on issues that are of interest to public entities, constitutional institutions, municipalities, municipal entities, Parliament and the provincial legislatures, trading entities and Public Further Education and Training Colleges collectively called “entities” in this document (unless indicated otherwise).

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