The Generally Recognised Accounting Practice (GRAP) standard was published by the Accounting Standards Board (ASB), in accordance with the Public Finance Management Act (PFMA). GRAP standard applies to public / government entities, and grasping its requirements is critical for auditors in the public sector. GRAP assists in identifying and recognising business transactions for accounting purposes, and the required reporting of those transactions in a set of financial statements. This session focuses on GRAP 1, highlighting various aspects of financial statements, including: • the requirements in preparing each individual statement i.e. balance sheet, income statement, notes, etc. • structure / form / content of individual statements, and • the underlying pervasive principles