Urgent clarification on the status of Standards GRAP

27 June 2022
Accounting
South African Accounting Academy

The Accounting Standards Board (ASB) has noted that some entities may have applied the incorrect versions of the Standards of Generally Recognised Accounting Practice (GRAP) in the preparation of their financial statements for 31 March 2022.

In 2019 and 2021, the ASB revised GRAP 104, and GRAP 25 respectively.

GRAP 104 on Financial Instruments (Revised 2019) is not yet effective.
GRAP 25 on Employee Benefits (Revised in 2021) has no effective date.

The Standards of GRAP that are not yet effective are separately listed on the ASB's website.

Disclosure of Standards of GRAP approved but not yet effective should be considered in terms of the relevant Standards of GRAP, Directive 5 and the FAQs issued by the Secretariat.

Click here to access the Standards that are not yet effective:

https://www.asb.co.za/approved-and-not-yet-effective/

Relevance to Auditors, Independent Reviewers & Accountants:

You need to assess fair presentation and compliance with the Standards of GRAP.
Disclosure of Standards of GRAP approved but not yet effective should be considered in terms of the relevant Standards of GRAP, Directive 5 and the FAQs issued by the ASB Secretariat.
Entities should apply the incorrect versions of the Standards of Generally Recognised Accounting Practice (GRAP) in the preparation of their financial statements for 31 March 2022.
Non-compliance with GRAP standards may lead to a modified audit opinion.

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.
Disclosure of Standards of GRAP approved but not yet effective should be considered in terms of the relevant Standards of GRAP, Directive 5 and the FAQs issued by the ASB Secretariat.
Entities should apply the incorrect versions of the Standards of Generally Recognised Accounting Practice (GRAP) in the preparation of their financial statements for 31 March 2022.

To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update

Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more:
https://cpd.accountingacademy.co.za.