National Treasury: Proposed Changes to AFS Annexure 5

Posted 05 August 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The National Treasury has published draft amendments to the reporting requirements for inter-government balances within the departmental financial reporting framework.

In terms of the financial reporting standards for national and provincial departments, the Office of the Accountant General in the National Treasury has published proposed changes to Annexure 5: Inter-government contingent liabilities, accruals, payables and receivables of the Annual Financial Statements (AFS) template.

The proposed amendments relate specifically to the disclosure and reporting of transactions between government entities. The updates affect the following categories within the AFS template:

  • Inter-government contingent liabilities;
  • Accruals;
  • Payables; and
  • Receivables.

The draft amendments have been released for public comment and are hosted on the Modified Cash Standard (MCS) Knowledge Hub. These changes are intended to ensure greater accuracy and transparency in the reconciliation of inter-departmental balances, which remains a focus area for the Auditor-General.

View the detailed proposed amendments on the MCS Knowledge Hub here or via the National Treasury updates page at this link.

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

  • For yourself: If you are a public sector accountant or auditor, you must familiarise yourself with the revised disclosure requirements for inter-governmental balances to ensure future audit readiness and compliance with the Modified Cash Standard.
  • For your business: Audit firms and consultancies serving the public sector should update their internal AFS review checklists and working papers to align with the proposed Annexure 5 structure to avoid reporting discrepancies.
  • For your clients: Government departments must evaluate whether their current accounting records for inter-departmental payables and receivables are sufficiently granular to meet the proposed reporting specifications and facilitate easier reconciliation with counterparty departments.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-afs-annexure-5-proposed-changes

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