National Building Regulations and Building Standards Act, 1977
R 385
Public Audit Act, 2004 (Act No. 25 of 2004)NoticesAuditing of Local Government in terms of the Municipal Finance Management Act (No. 56 of 2003) (MFMA)Annexure B : "GRAP & GAAP basis of preparation |
The financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practice (GAAP) including any interpretations of such Statements issued by the Accounting Practices Board, with the prescribed Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board replacing the equivalent GAAP Statement as follows:
|
Standard of GRAP |
Replaced Statement of GAAP |
|
GRAP 1 : Presentation of financial statements |
AC101 : Presentation of financial statements |
|
GRAP 2: Cash flow statements |
AC118 : Cash flow statements |
|
GRAP 3: Accounting policies, changes in accounting estimates and errors |
AC103: Accounting policies, changes in accounting estimates and errors |
The recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 & 3 has resulted in the following significant changes in the presentation of the financial statements:
| 1) | Terminology differences |
|
Standard of GRAP |
Replaced Statement of GAAP |
|
Statement of financial performance |
Income statement |
|
Statement of financial position |
Balance sheet |
|
Statement of changes in net assets |
Statement of changes in equity |
|
Net assets |
Equity |
|
Surplus/deficit for the period |
Profit/loss for the period |
|
Accumulated surplus/deficit |
Retained earnings |
|
Contributions from owners |
Share capital |
|
Distributions to owners |
Dividends |
|
Reporting date |
Balance sheet date |
| 2) | The cash flow statement can only be prepared in accordance with the direct method. |
| 3) | Specific information such as: |
| a) | receivables from non-exchange transactions, including taxes and transfers; |
| b) | taxes and transfers payable; |
| c) | trade and other payables from non-exchange transactions; |
must be presented separately on the statement of financial position.
| 4) | The amount and nature of any restrictions on cash balances is required to be disclosed. |
Paragraph 11 - 15 of GRAP 1 has not been implemented as the budget reporting standard is in the process of being developed by the international and local standard setters. Although the inclusion of budget information would enhance the usefulness of the financial statements, non-disclosure will not affect fair presentation."
