Accounting Standards Board Approves Amendments to GRAP 109

Posted 11 August 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The Board of the Accounting Standards Board (ASB) has approved final amendments to the Standard of Generally Recognised Accounting Practice on Accounting by Principals and Agents (GRAP 109).

The amendments follow feedback gathered during the post-implementation review of GRAP 109, which was previously issued for public comment under Exposure Draft (ED) 215. The ASB noted that no substantive structural changes have been made to the core standard. Instead, the updates provide practical clarification regarding operational applications in public sector arrangements.

Key aspects of the revisions include:

  • Clarifying criteria for identifying principal-agent relationships versus standard service provider arrangements.
  • Refining guidance on assessing control and beneficial entitlement in agent-administered transactions.
  • Ensuring consistent presentation and disclosure requirements across affected reporting entities.

The Minister of Finance will approve and publish the formal effective date for full implementation in due course. Once the official effective date is promulgated, entities will be permitted to apply early adoption.

Click here to download Amendments to GRAP 109 (Accounting by Principals and Agents).

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

  • For yourself: Public sector accountants and auditors must familiarise themselves with the updated guidance in ED 215 to ensure correct classification of agency arrangements.
  • For your business: Audit firms serving public sector clients must update their technical accounting checklists and GRAP compliance audit programmes ahead of the effective date.
  • For your clients: Government departments, municipalities, and public entities engaging in agency agreements should evaluate whether early adoption is advantageous prior to mandatory implementation by the Minister of Finance.

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

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