National Treasury: New Accounting Standards Regulations issued under the PFMA

National Treasury: New Accounting Standards Regulations issued under the PFMA

• 05 December 2025
• Accounting
• South African Accounting Academy

Summary:

The Minister of Finance has issued new Regulations on Accounting Standards in terms of section 91(1)(b) and (c) of the Public Finance Management Act, 1999 (PFMA).

Article:
The regulations formally prescribe several revised Standards of GRAP, which will become effective for financial periods commencing on or after 1 April 2027.

The following Standards of Generally Recognised Accounting Practice (GRAP) are prescribed and have been approved and gazetted:

• GRAP 1 – Presentation of Financial Statements (Revised 2022)
• GRAP 103 – Heritage Assets (Revised 2022)
• GRAP 105 – Transfers of Functions Between Entities Under Common Control (Revised 2023)
• GRAP 106 – Transfers of Functions Between Entities Not Under Common Control (Revised 2023)
• GRAP 107 – Mergers (Revised 2023)

These revisions incorporate clarifications and improvements issued by the Accounting Standards Board (ASB) to enhance consistency, comparability, and transparency in public-sector financial reporting.

The regulations take effect from 1 April 2027, allowing institutions sufficient time to plan and implement system and policy updates aligned with the revised standards.

Click here to access the Regulations:

https://lms.treasury.gov.za/mod/forum/discuss.php?d=92 

Relevance to Auditors, Independent Reviewers & Accountants:

• The PFMA is yet another piece of legislation that your relevant national and provincial departmental clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• 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.
• As an auditor and independent reviewer, you need to consider and assess compliance with GRAP standards and thus you need knowledge of these as well as the new Regulations.

Relevance to Your clients:

• GRAP standards are applicable to all entities preparing their financial statements on the accrual basis of accounting.
• These clients should be aware of these GRAP standards as well as the new Regulations.

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