Implementation Guideline on GRAP 25 - Employee Benefits

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Implementation Guideline on GRAP 25 - Employee Benefits

• 24 April 2024
• Financial Reporting
• South African Accounting Academy

This document provides guidance on the accounting treatment and disclosures of employee benefits. The content should be read in conjunction with GRAP 25 (issued April 2021).

For purposes of this guide, “entities” generally refer to the following bodies to which the standards of GRAP relate to:

• Public entities
• Constitutional institutions
• Municipalities and all other entities under their control
• Trading entities and government components applying the standards of GRAP
• Parliament and the provincial legislatures
• Technical and Vocational Education and Training (TVET) and Community Education and Training (CET) colleges

GRAP 25 defines employee benefits as all forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment.
The Standards of GRAP apply only to material items.

Click here to download the Implementation Guide:

https://ag.treasury.gov.za/org/tss/Shared%20Documents/Generally%20Recognised%20Accounting%20Practice%20Reporting/Accounting%20Manuals/Accounting%20Guideline%20on%20GRAP%2025_March%202024_clean.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• You need to assess fair presentation and compliance with the Standards of GRAP.
• For financial statements to be fairly presented, the effects of transactions, other events and conditions should be truthfully and accurately represented in accordance with the definitions and recognition criteria for assets, liabilities, revenue and expenses. Fair presentation is achieved by, inter alia, complying with all relevant standards of GRAP.
• Non-compliance with GRAP 25 may lead to a modified audit opinion.
• As an auditor and independent reviewer, you need to consider and assess compliance with GRAP 25 and thus you need knowledge of this implementation guide regarding employee benefits.

Relevance to Your clients:

• GRAP 25 is applicable to all entities preparing their financial statements on the accrual basis of accounting.
• These clients should be aware of this implementation guide regarding employee benefits.

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