National Treasury: Updated GRAP 1 Accounting Guideline

Posted 13 February 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Office of the Accounting-General (OAG) has published an updated Accounting Guideline for GRAP 1: Presentation of Financial Statements, introducing specific clarifications regarding the presentation of investments.

In terms of the Standards of Generally Recognised Accounting Practice (GRAP), the OAG within the Department of National Treasury issued this update to support consistent and principle-based application of financial reporting. The updated guidance specifically addresses the “Presentation of Investments (Substance over Form)” and is applicable to all entities preparing financial statements on the accrual basis of accounting.

The guideline provides new illustrative guidance to assist entities in determining whether investments should be classified as current or non-current assets. Key technical clarifications include:

  • Substance over legal maturity: Entities must evaluate the underlying substance of investment arrangements rather than relying exclusively on legal maturity dates for classification.
  • Continuous roll-overs: The document explains how to treat short-term instruments that are continuously rolled over to meet long-term fiduciary or capital preservation objectives.
  • Mixed presentation bases: Guidance is provided on the use of mixed presentation bases and the specific disclosure requirements necessary to maintain compliance with GRAP 1.

This Guideline, which was originally issued in February 2020, applies to all public sector bodies required to comply with GRAP standards, including those preparing consolidated and separate financial statements. It emphasizes that while GRAP 1 provides the basis for presentation, entities must also consider the requirements of other specific standards in conjunction with this guidance.

Click here to download the 29-page Accounting Guideline on GRAP 1.

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

  • For yourself: You must apply professional judgement to determine if the substance of an investment arrangement contradicts its legal maturity, ensuring that your classification of assets as current or non-current is technically defensible under the updated OAG guidance.
  • For your business: Audit and accounting firms must update their GRAP compliance checklists and internal reporting templates to reflect the OAG’s clarifications on continuous roll-overs and mixed presentation disclosures.
  • For your clients: Public sector clients with short-term instruments held for long-term fiduciary purposes must re-evaluate their statement of financial position to ensure these investments are not misclassified based solely on their contractual end-dates.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-updated-grap-1-accounting-guideline

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