ASB Proposes Amendments to GRAP Standards

Posted 24 October 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Legal Academy: The Accounting Standards Board (ASB) has invited stakeholders to comment on proposed amendments to the Standards of Generally Recognised Accounting Practice (GRAP) regarding principal-agent arrangements and general improvements to the suite of standards.

In terms of the Standards of Generally Recognised Accounting Practice (GRAP), the Accounting Standards Board has published exposure drafts seeking input on two distinct areas of the regulatory framework. The first set of proposals concerns the standard on Accounting by Principals and Agents. These amendments aim to clarify the application of the standard and address practical challenges identified by preparers and auditors in the public sector.

The second area of consultation involves the periodic “Improvements to Standards of GRAP” project. This project typically addresses non-urgent but necessary changes to various standards to ensure consistency, remove redundancies, or provide further clarification on existing requirements across the GRAP framework.

Submission Deadlines

  • Comments on the proposed amendments to the standard for accounting by principals and agents must be submitted by 13 February 2026.
  • Comments on the general improvements to various existing GRAP standards must be submitted by 9 January 2026.

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

  • For yourself: No direct individual obligations; impact is channelled through professional responsibilities to ensure public sector financial statements comply with the latest ASB directives.
  • For your business: Audit firms and consultancy practices must review the exposure drafts to assess how the proposed changes to principal-agent accounting will affect audit methodologies and technical advice provided to public sector entities.
  • For your clients: Public sector entities and municipalities must evaluate the proposed amendments to determine the potential impact on their accounting policies, internal controls, and financial reporting systems ahead of the implementation dates.

Originally published at https://legalacademy.co.za/news/read/accounting-more-grap-standards-amendments-out-for-comment

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