ASB Issues Exposure Draft 215: Proposed Amendments to GRAP 109

Posted 29 January 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Accounting Standards Board (ASB) has issued Exposure Draft (ED) 215, which proposes targeted amendments to the Standard of GRAP on Accounting by Principals and Agents (GRAP 109).

In terms of the mandate of the Accounting Standards Board, the proposed amendments in ED 215 aim to refine the application of GRAP 109. The primary objective of this Standard is to outline the principles an entity must use to assess whether it is party to a principal-agent arrangement, and whether it functions as the principal or the agent when undertaking transactions under such an arrangement.

The proposed amendments do not introduce new recognition or measurement requirements for revenue, expenses, assets, or liabilities resulting from these arrangements. Instead, the draft focuses on providing enhanced guidance and clarity on the following areas:

  • The assessment criteria used to determine whether an entity is a principal or an agent in a transaction.
  • Guidance on which party should recognise specific revenue, expenses, assets, and liabilities.
  • Prescribed disclosure requirements for entities acting as either a principal or an agent to ensure transparency in financial reporting.

The ASB notes that these amendments are intended to assist public sector entities in applying the standard more consistently, particularly where complex arrangements between organs of state or third parties exist.

Click here to download the 49-page Exposure Draft of Amendments to GRAP 109.

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

  • For yourself: No direct individual obligations; however, you must familiarise yourself with the refined assessment criteria in ED 215 to ensure accurate technical advice on public sector accounting treatments.
  • For your business: Audit and accounting firms must update their GRAP compliance checklists and internal technical manuals to reflect the clarified guidance on principal-agent assessments to avoid audit findings.
  • For your clients: Public sector entities and those applying GRAP must review their existing inter-departmental and service-level agreements to ensure that revenue and assets are recognised by the correct party according to the updated GRAP 109 principles.

Originally published at https://accountingacademy.co.za/news/read/asb-ed-215-amendments-to-grap-109

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