A discussion around the changes to the below standards, simplifying the requirements and pointing out when they become effective

• GRAP 104 Financial instruments
• GRAP 1 Presentation of Financial Statements
• GRAP 103 Heritage Assets
• GRAP 105 Transfer of Functions Between Entities Under Common Control
• GRAP 106 Transfer of Functions Between Entities not Under Common Control
• GRAP 107 Mergers
• IGRAP 22 Foreign Currency Translation and AdvanceConsideration
• Entities applying GRAP should use GRAP 3 and Directive 5 in adopting new standards and disclosing the impact in their annual financial statements

Course Content – GRAP 1 Presentation of Financial Instruments:

This session focuses on highlighting

• the requirements in preparing each individual statement i.e. balance sheet, income statement, changes in net assets, and notes
• structure / form / minimum content of individual statements
• the underlying pervasive principles, and
• accounting policy elections as available

Course Content – GRAP 3 Accounting Policies, Changes in Estimates and Errors:

When an entity

• Makes mistakes in their financial statements
• Decides to change their accounting policies, for e.g. going from Revaluation model to Cost model for PPE, or

Re-estimates a useful life or residual value, amongst other estimates, these events will all trigger the requirements of GRAP 3, and management will be obliged to consider its implications.

GRAP 3’s requirements will be worked through in terms of the following:

• Selection and application of accounting policies
• Consistency and changes of accounting policies
• Disclosures related to changes in accounting policies

• Changes in accounting estimates and disclosures that accompany changes
• Errors and disclosures that are required because of discovering errors

Course Content – GRAP 104 Financial Instruments:

GRAP 104 Financial Instrument assets and liabilities have separate accounting requirements and present an accountant with varying options for classifying, as well as subsequently remeasuring financial instruments.

The typical classification / measurement bases are amortised cost, fair value, and cost.

GRAP 104: Financial Instruments requirements to be covered:

• Scoping and Definitions
• Recognition and Classification
• Measurement of financial assets and financial liabilities

• Initial, and
• Subsequent (incl. impairment)

• Derecognition of financial assets and financial liabilities
• Disclosure

GRAP 108 Statutory Receivables are receivables that arise from legislation and require settlement by another entity in cash or another financial asset.

Requirements to be discussed:

• Definitions
• Recognition
• Measurement
• Derecognition
• Disclosure

Course Content – GRAP 109: Accounting by Principals and Agents:

This Standard is to outline principles to be used by an entity to assess whether it is party to a principal-agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement. It does not introduce new recognition or measurement requirements for revenue, expenses, assets and/or liabilities that result from principal-agent arrangements, but rather it guides when these elements are to be recognised by an agent or a principal, as well as prescribe what information should be disclosed.

Guidance will be provided on:

• Definitions and scoping
• Identifying whether an entity is a principal or agent
• Accounting by principal or agent, and
• Presentation and disclosure
  
  

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