What’s next for the Board?
The Board of the ASB will meet on the 30th of September. The Board will be discussing the following: Draft Interpretation of the Standards of GRAP on The Effects of Past Decisions on Materiality
GRAP 3 on Accounting Policies, Changes in Accounting Estimates and Errors is applied when formulating accounting policies. Entities apply the accounting policies set out in the Standards of GRAP, except when the effect of applying them is immaterial. This means that entities could apply alternative accounting treatments to immaterial items, transactions or events.
The Board was asked to provide guidance on whether the application of these alternative accounting treatments based on materiality could affect future reporting periods. The Interpretation provides guidance on this issue by considering whether these alternative accounting treatments (i) can result in changes in accounting policy, (ii) are departures from the Standards of GRAP, or (iii) are errors.
Research Paper on Application of Standards of GRAP by Small Entities The Research Paper outlines the results of the Board’s research on whether alternative reporting requirements or guidance should be developed for “small entities”. The Research Paper summarises the Board’s research in the following areas: The characteristics that could be used to classify entities as small. The challenges experienced by small entities to prepare financial statements in accordance with Standards of GRAP. Actions agreed by the Board.
GRAP Reporting Framework for 2021/22
The development of a new Annexure for Directive 5 on Determining the GRAP Reporting Framework for financial years commencing on or after 1 April 2021.
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