ASB Invites Comments on Draft GRAP for Social Benefit Liability Verification

Posted 15 August 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Legal Academy: The Accounting Standards Board (ASB) has released a draft Standard of Generally Recognised Accounting Practice (GRAP) for public comment, focusing on the verification of social benefit liabilities.

In terms of the notice gazetted by the Accounting Standards Board (ASB), stakeholders are invited to provide input on proposed accounting treatments for determining the impact of substantive ongoing eligibility criteria on social benefit liability verification. This draft standard is a refinement of a previous version released for comment in August 2023, incorporating feedback and summaries of responses received during that initial consultation phase.

The proposed standard aims to clarify how public sector entities should account for and verify liabilities related to social benefits, particularly when those benefits are contingent upon recipients meeting continuous eligibility requirements. The ASB has set a deadline of 14 November 2025 for the submission of all comments and technical inputs.

Key focus areas of the draft standard

  • The assessment of what constitutes ‘substantive’ ongoing eligibility criteria in the context of social benefits.
  • The methodology for verifying liabilities when eligibility is subject to change over time.
  • Alignment of social benefit reporting with the broader Standard of Generally Recognised Accounting Practice (GRAP) framework.
  • The practical application of verification procedures within public sector financial reporting cycles.

Click here to view the notice and related documentation on the Accounting Standards Board website.

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

  • For yourself: No direct individual compliance obligations; however, professionals advising public sector entities must maintain technical proficiency in these evolving GRAP requirements to ensure accurate reporting.
  • For your business: Audit and accounting firms providing services to the public sector should update their internal technical manuals and audit programs to reflect the proposed verification methodologies for social benefit liabilities.
  • For your clients: Public sector clients, particularly those managing social security or welfare programs, must review their existing data systems and eligibility verification processes to ensure they can provide the necessary evidence required by the draft standard.

Originally published at https://legalacademy.co.za/news/read/accounting-standards-input-sought-on-social-benefits-liability-verification-proposals

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