ASB Issues Exposure Draft 217 on Measurement Framework Amendments

Posted 18 February 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 217 (ED 217) to amend the foundational principles for measuring assets and liabilities within the public sector accounting framework.

In terms of the Board’s standard-setting mandate, Exposure Draft 217 (ED 217) proposes revisions to Chapter 7 of the Conceptual Framework, titled “Measurement of assets and liabilities in financial statements”. These amendments are intended to refine the principles that the Board uses to develop measurement requirements in individual Standards of Generally Recognised Accounting Practice (GRAP). The ASB has noted that a dedicated Standard of GRAP on Measurement will be developed once these framework amendments are finalised.

The proposed amendments address several gaps in the current Conceptual Framework, most notably the absence of explicit guidance on initial measurement. Key highlights of the exposure draft include:

  • Initial Measurement: A proposal that assets be initially measured at their transaction price plus transaction costs, while liabilities be measured at their transaction price minus transaction costs, unless specific exceptions apply.
  • Measurement Hierarchy: The introduction of two new levels of measurement classification — measurement models and measurement techniques — to be used alongside existing measurement bases.
  • Standard-Specific Application: Recognition that while the Conceptual Framework provides the foundation, measurement requirements in individual Standards of GRAP may be developed for specific purposes and might not always mirror the framework’s concepts.

Click here to download the 5-page Executive Summary.

Click here to download the 42-page Exposure Draft (ED 217).

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

  • For yourself: You must familiarise yourself with the proposed measurement models and techniques to ensure your technical knowledge remains current with the evolving Standards of GRAP.
  • For your business: Your firm should evaluate the impact of the proposed initial measurement rules on internal audit methodologies and technical accounting manuals used for public sector engagements.
  • For your clients: You should advise public sector clients that the proposed amendments will likely lead to a new, dedicated Standard of GRAP on Measurement, which will standardise how transaction costs are handled during initial recognition.

Originally published at https://accountingacademy.co.za/news/read/asb-ed-217-amendments-to-chapter-7-in-the-conceptual-framework

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