ASB: Simplifying and Enhancing Application of GRAB Standards

Siyasanga Nondlazi

Standard-setter at the Accounting Standards Board

The ASB is continually working to find innovative and stakeholder-focused ways of supporting preparers and users of financial statements. Our vision is only fully realised when we produce relevant and implementable accounting standards that translate into financial statements that can be used to promote accountability and effective financial management in the public sector.

Over the years, the ASB has received feedback from stakeholders indicating that the practical application of GRAP Standards can be complex. As a response to the needs of our stakeholders, we have initiated a project to enhance the application of the Standards of GRAP.

As part of this project, we aim to communicate the basic principles of GRAP Standards simply and concisely. We will achieve this through easy-to-digest mediums such as short videos on our YouTube channel. The content will benefit both preparers and users of financial statements.

Introduction to ASB and the GRAP Reporting Framework

As the initial output of this project, the Secretariat produced content on the ASB and the work that the ASB does, as well as how to navigate the ASB website. These videos provide information on the Standards of GRAP and the GRAP Reporting Framework applicable for 2023 onwards, including the changes that were made to the Standards of GRAP.

A longer YouTube video below on improving the quality of financial statements covers specific considerations when preparing financial statements that will assist in improving the quality of financial statements.

Application of GRAP 17 on Property, Plant and Equipment

The most recent series of videos addresses various asset-related principles in GRAP 17 on Property, Plant and Equipment. The videos include the following topics:

• Why is applying GRAP 17 important?

• How should assets be classified?

• Fully depreciated assets still in use.

• Is land accounted for using only title deeds?

• Approach and frequency of revaluing assets in GRAP 16 and GRAP 17.

Common questions on depreciation (what depreciation is, when does it commence or end, why are useful lives reviewed and how).

Enhancing understanding of the financial statements

The next series of YouTube videos will be tailored towards enhancing the users' knowledge and understanding of the financial statements. The videos will include content on how the information presented in the financial statements can be used effectively to make informed decisions and hold entities accountable.