National Treasury Issues New GRAP Regulations under PFMA

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

Brought to you by SA Accounting Academy: The Minister of Finance has published new regulations formally prescribing several revised Standards of Generally Recognised Accounting Practice (GRAP) for public sector entities.

In terms of section 91(1)(b) and (c) of the Public Finance Management Act, No. 1 of 1999 (PFMA), the Minister has issued new Regulations on Accounting Standards. These regulations formally adopt revised Standards of GRAP that incorporate clarifications and improvements issued by the Accounting Standards Board (ASB). The primary objective of these revisions is to enhance consistency, comparability, and transparency in financial reporting across South Africa’s public sector.

The regulations and the associated revised standards will become effective for financial periods commencing on or after 1 April 2027. This delayed implementation date is intended to provide public institutions, including departments and constitutional institutions, with sufficient time to plan and execute necessary updates to their financial systems and reporting policies.

  • The regulations formally prescribe the approved and gazetted Standards of GRAP.
  • Revisions include technical clarifications and improvements to existing standards to align with international best practices.
  • The implementation timeline allows for a multi-year transition period for public sector compliance.

Click here to view the official notice and related documentation on the National Treasury website.

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

  • For yourself: You must update your technical knowledge of the revised Standards of GRAP to ensure your advisory or reporting services remain compliant with the updated ASB framework ahead of the 2027 deadline.
  • For your business: Accounting and audit firms must review their internal audit methodologies and public-sector compliance checklists to incorporate the revised standards for all engagements starting in the 2027/28 financial year.
  • For your clients: Public sector entities and PFMA-governed institutions must initiate a formal gap analysis of their current accounting policies and financial reporting systems to ensure they are ready to implement the revised standards by 1 April 2027.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-new-accounting-standards-regulations-issued-under-the-pfma

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