National Treasury: Updated GRAP 23 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) within the Department of National Treasury has issued an updated Accounting Guideline on GRAP 23: Revenue from Non-Exchange Transactions.

In terms of the Standards of Generally Recognised Accounting Practice (GRAP), this updated guideline provides technical clarification regarding the accounting treatment of donated non-monetary assets. The primary adjustment confirms that Value Added Tax (VAT) and other transaction costs must be excluded when measuring the fair value of donated non-monetary assets on initial recognition. This is because fair value is defined as a market-based measure and does not reflect transaction-specific costs incurred by the entity.

The guideline, which was originally issued in February 2020, applies to all public sector entities preparing financial statements on the accrual basis of accounting. GRAP 23 governs revenue arising from non-exchange transactions, defined as transactions where an entity receives value from another party without directly giving approximately equal value in exchange.

Scope and Application

  • The guideline applies to revenue from non-exchange transactions, including taxes and transfers.
  • It specifically excludes the reorganisation of departments or the shifting of functions between departments (transfer of functions).
  • The update is intended to support principle-based application and improve comparability across financial statements.

The updated guidance should be read in conjunction with the full text of GRAP 23 to ensure sound professional judgement is applied during the preparation of annual financial statements.

Click here to download the Accounting Guideline on GRAP 23 (Updated December 2024).

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

  • For yourself: You must apply the market-based measurement principle to exclude VAT and transaction costs when performing initial recognition of donated non-monetary assets under GRAP 23.
  • For your business: Update the firm’s audit programs and accounting checklists to ensure that public sector financial statements are reviewed against these clarified measurement requirements.
  • For your clients: Advise public sector entities to adjust their valuation and asset recognition processes to ensure that transaction-specific costs are not capitalised as part of the fair value of donated assets.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-updated-grap-23-accounting-guideline

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