National Treasury: Updated GRAP 23 Accounting Guideline

---

National Treasury: Updated GRAP 23 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 23: Revenue from Non-Exchange Transactions.

Article:

This document provides guidance on the accounting treatment of revenue from non-exchange transactions.

The update relates to Donated Non-Monetary Assets and these important clarifications to support consistent and principle-based application of the Standards of GRAP.

Clarified guidance confirms that VAT and other transaction costs are excluded when measuring the fair value of donated non-monetary assets on initial recognition, as fair value is a market-based measure and does not reflect transaction-specific costs.

This update strengthens alignment with GRAP principles, improve comparability, and support sound professional judgement.

The contents should be read in conjunction with GRAP 23.

GRAP 23 is applicable to all entities preparing their financial statements on the accrual basis of accounting and includes revenue arising from non-exchange transactions.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Reorganisation of departments or shifting of functions between departments (i.e. transfer of functions), are therefore not addressed by the standard and this guide.

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 35-page Accounting Guideline:

https://lms.treasury.gov.za/pluginfile.php/1912/mod_folder/content/0/GRAP%20Guides%20issued%20by%20the%20OAG/Accounting%20Guideline%20on%20GRAP%2023%20Dec%202025%20For%20Publishing.pdf?forcedownload=1 

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 23 is applicable to all entities preparing their financial statements on the accrual basis of accounting and includes revenue arising from non-exchange transactions.
• 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 accounting treatment of revenue from non-exchange transactions.

Relevance to Your clients:

• GRAP 23 is applicable to all entities preparing their financial statements on the accrual basis of accounting and includes revenue arising from non-exchange transactions.
• These clients should be aware of published guidance on the accounting treatment of revenue from non-exchange transactions.

0 COMMENTS

LEAVE A COMMENT