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National Treasury: GRAP Reporting Bulletin: Public Entity Surpluses
- 24 December 2025
- Accounting
- South African Accounting Academy
Summary:
National Treasury has issued the GRAP Reporting Bulletin, which provides clear, practical guidance on how Public Entities should recognise, measure and disclose Surplus Funds.
Articles:
This constitutes accounting guidance to entities within the scope of National Treasury Instruction No. 03 of 2025/26 on the recognition, measurement, and disclosure of surplus funds to be surrendered or retained under section 53(3) of the Public Finance Management Act (PFMA).
It clarifies the interaction between GRAP 23 (Revenue from Non-Exchange Transactions), GRAP 19 (Provisions, Contingent Liabilities and Contingent Assets), and related PFMA provisions, and explains how to distinguish conditions, restrictions, and statutory surrender obligations.
It explains:
- When to recognise a receivable for annual allocations under GRAP 23, including treatment where the Appropriation Bill is delayed under section 29 of the PFMA.
- How to distinguish between conditions, restrictions, and statutory surrender obligations.
- When a liability, provision, or contingent liability should be recognised for surplus surrenders under GRAP 19.
- Why surrender obligations are recorded as expenditure, not a reversal of revenue.
- How to apply GRAP 14 for adjusting and non-adjusting events — including cases where Treasury later approves retention after year-end.
This bulletin supports transparent and consistent reporting across public entities, ensuring that surplus assessments, retention requests, and surrender decisions are aligned with both legislative and GRAP requirements.
Contents:
- Purpose
- Initial recognition and measurement of receivables for annual allocations
- Revenue Recognition and Conditions under GRAP 23
- Liabilities for the surrender of cash surpluses
- Events after the reporting date
This publication also contains 13 examples, to demonstrate clear guidance.
Click here to download the 13-page document:
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 standards may lead to a modified audit opinion.
- You should be aware of this published document, which provides guidance on Public Entity Surpluses.
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.
- Relevant clients should be using this published document, which provides guidance on Public Entity Surpluses.