| GRAP Reporting Framework for 2021/22 – what changed? |
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Role and purpose of Directive 5
Directive 5 on Determining the Reporting Framework determines the GRAP reporting framework for a particular reporting period. The Appendices of the Directive list the standards and pronouncements that are the GRAP Reporting Framework for a reporting period. The Appendices are updated each year.
Directives are authoritative and entities have to apply Directive 5 and the list of pronouncements in the applicable Appendix to prepare financial statements for a particular reporting period.
What were the changes for 2021/22?
The following changes apply for 2021/22: The Minister of Finance approved a number of Standards of GRAP to become effective for trading entities on 1 April 2021. Trading entities now apply the same pronouncements as other entities. Directive 14 on The Application of Standards of GRAP by Public Entities that Apply IFRS® Standards became effective. What about pronouncements, and changes to pronouncements that are not yet effective?
The Accounting Standards Board issued a number of pronouncements, and changes to pronouncements recently that are not yet effective. Their impact on the 2021/22 GRAP Reporting Framework is as follows:
| Pronouncement | Effective date | Impact on 2021/22 | | GRAP 104 on Financial Instruments (revised 2019) | 1 April 2025 | The transitional provisions require adoption of the revised Standard taken as a whole. Partial or incremental adoption is not permitted. | | GRAP 25 on Employee Benefits (2021) | The effective date is still to be determined by the Minister of Finance. | The transitional provisions require adoption of the revised Standard taken as a whole. Partial or incremental adoption is not permitted. | | IGRAP 7 on The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (2021) | The interpretation becomes effective with the amendments to GRAP 25. | | Improvements to the Standards of GRAP (2020) | 1 April 2023 | The improvements may be early adopted per Standard. | | Guideline on Accounting for Landfill Sites | The guideline should be applied from the effective date of the Improvements to the Standards of GRAP (2020), particularly the improvement to GRAP 17 on Property, Plant and Equipment. | | Amendments to GRAP 1 on Presentation of Financial Statements (2019) | 1 April 2023 | Earlier application is encouraged. | | IGRAP 21 on The Effect of Past Decisions on Materiality | 1 April 2023 | Earlier application is encouraged. | | Guideline on The Application of Materiality to Financial Statements | The guideline does not have an effective date. | Entities are encouraged to apply it. |
What about pronouncements of international standard-setters?
The Appendices to Directive 5 include pronouncements issued by the IPSASB and IASB that should be considered by entities in preparing their financial statements for a particular reporting period. Pronouncements of other standard-setters can only be used to formulate accounting policies; they cannot be adopted by entities. Any IPSAS or IFRS Standards not included in the relevant Appendix to Directive 5 should not be considered by entities in formulating accounting policies.
Refer to a communication on the IPSAS and IFRS Standards that entities should not consider when formulating accounting policies: here
Access Directive 5 and the related documents on the ASB website here. |
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