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National Treasury: Updated GRAP 1 Accounting Guideline
- 13 February 2026
- Accounting
- South African Accounting Academy
Summary
The Office of the Accounting-General in the Department of National Treasury has published an updated Accounting Guideline on GRAP 1: Presentation of Financial Statements.
Article:
This document provides guidance on the bases for the presentation of financial statements.
The update relates to the Presentation of Investments (Substance over Form) and these important clarifications to support consistent and principle-based application of the Standards of GRAP.
New illustrative guidance explains how entities should consider the substance of investment arrangements, rather than legal maturity alone, when classifying investments as current or non-current. This includes scenarios where short-term instruments are continuously rolled over to meet long-term fiduciary or capital preservation objectives, as well as the use of mixed presentation bases and related disclosure requirements.
This update strengthens alignment with GRAP principles, improve comparability, and support sound professional judgement.
GRAP 1 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.
Consequently, in presenting financial statements entities should consider GRAP 1 as well as the requirements in other standards.
This guide on the standard of GRAP relate to, unless specifically stated otherwise, the following bodies:
- 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
- TVET and CET colleges
This Guideline was originally issued in February 2020.
Click here to login to the Learner Management System (LMS) and download the 29-page Accounting Guideline:
Relevance to Auditors, Independent Reviewers & Accountants:
- You need to assess fair presentation and compliance with the Standards of GRAP – for all your relevant clients on the accrual basis of accounting.
- Non-compliance with GRAP 1 may lead to a modified audit opinion.
- GRAP 1 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.
- As an auditor and independent reviewer, you need to consider and assess compliance with GRAP 1 and thus you need knowledge of this published guidance on the presentation of financial statements.
Relevance to Your clients:
- GRAP 1 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.
- These clients should be aware of this published guidance on the presentation of financial statements.