ASB Issues Updated FAQs on Standards of GRAP

Posted 26 June 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: In terms of the Standards of Generally Recognised Accounting Practice (GRAP), the Accounting Standards Board (ASB) has issued updated Frequently Asked Questions (FAQs) to address measurement issues for assets and liabilities.

The ASB has completed research on stakeholder needs regarding the measurement of assets and liabilities within the local environment. This research forms the basis for the development of a future Standard of GRAP on Measurement. The updated FAQs, dated 20 May 2025, incorporate these findings and address minor issues identified since the previous update in March 2024.

The Standards of GRAP apply only to material items. Entities must apply professional judgement to determine whether the issues outlined in the FAQs are material to their specific operations. The guidance is applicable to the following “entities”:

  • Public entities and constitutional institutions;
  • Municipalities and municipal entities;
  • Parliament and provincial legislatures;
  • Trading entities; and
  • Public Further Education and Training Colleges.

Click here to download the updated FAQs on Standards of GRAP (May 2025) or the marked-up version showing recent changes.

What this means for you, your business, or your clients

  • For yourself: You must review the updated FAQs to ensure your technical interpretation of asset and liability measurement aligns with the ASB’s latest research-driven guidance.
  • For your business: Public sector accounting practices and internal audit departments must update their compliance checklists and audit programs to reflect the minor amendments and measurement insights provided in the May 2025 update.
  • For your clients: Public sector entities must assess whether their current accounting policies for measuring assets and liabilities remain appropriate in light of the ASB’s research findings and ensure that materiality judgements are documented for audit purposes.

Originally published at https://accountingacademy.co.za/news/read/asb-updated-faqs-on-the-standards-of-grap

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