GRAP: Useful lives of assets

11 July 2022
Accounting
South African Accounting Academy

Determining the useful life of an asset has its place in the Standards of GRAP on Property, Plant and Equipment, Intangibles Assets, Investment Property, Living and Non-Living Resources and Heritage Assets, and affects the subsequent measurement of these assets.

Useful life is defined in GRAP 17.

The change in the useful life assessment from indefinite to finite should be accounted for as a change in accounting estimate in accordance with GRAP 3.

Click here to access the Newsletter:

https://mailchi.mp/35b4c29152ef/accounting-standards-board-newsletter-4

Relevance to Auditors, Independent Reviewers & Accountants:

You need to assess fair presentation and compliance with the Standards of GRAP.
This newsletter discusses some important aspects around the Useful lives of assets.
Non-compliance with GRAP standards may lead to a modified audit opinion.

Relevance to Your clients:

GRAP is applicable to all entities preparing their financial statements (and where applicable, consolidated and separate financial statements) on the accrual basis of accounting in accordance with the Standards of GRAP.
This newsletter discusses some important aspects around the Useful lives of assets.

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