The Board approved amendments to the disclosure requirements in GRAP 109 on Accounting by Principals and Agents. These amendments introduce a disclosure objective that explains what information users need. The objective helps preparers decide how to provide information in meeting users’ information needs and whether additional information is needed.
Other amendments to the GRAP 109 disclosures require an entity to disclose significant judgements made in concluding whether an arrangement is a principal-agent arrangement. This is in addition to the existing requirement to disclose significant judgements in concluding whether the entity is the principal or the agent.
The amendments also include a cross-reference to the encouraged disclosure in GRAP 2 on Cash Flow Statements about the nature and amount of restricted cash balances.
The amendments will apply from a future date to be determined by the Minister of Finance.
Disclaimer
This post has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.