Are you aware of proposed changes to GRAP 25 on Employee Benefits?

Are you aware of proposed changes to GRAP 25 on Employee Benefits?

The Standard of GRAP on Employee Benefits (GRAP 25) was issued by the Accounting Standards Board (the Board) in 2009 and was based on the International Public Sector Accounting Standard on Employee Benefits (IPSAS 25) effective at that time.

Why is it necessary to review GRAP 25?

Changes have been made to the international private and public sector accounting standards on employee benefits since GRAP 25 was issued. Based on stakeholder feedback when the Board consulted on its work programme for 2017 to 2020, a review of GRAP 25 was due. The ASB’s stakeholders indicated that the Board should maintain alignment with international standards for employee benefits. The Board also considered areas where departure from the requirements of IPSAS may be appropriate. These include departing because of (a) local issues, e.g. specific areas where local practices indicate that guidance is required, and (b) the need to simplify the requirements of the Standards where appropriate. The changes proposed to GRAP 25 are published as ED 184.

The Board also took the opportunity to update IGRAP 7 on The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, which is based on IFRIC 14 on IAS 19 — The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The changes to IGRAP 7 are published as part of ED 184.

What changes are proposed to GRAP 25?

Proposed changes per type of employee benefit are published on the ASB website and can be accessed by following this link.

We will publish a series of articles in September that will discuss the proposed changes to GRAP 25, which mostly affect the measurement, presentation and disclosure of post-employment defined benefit plans.

Where can the ED be accessed and how can you provide comment?

ED 184 has been published on the ASB’s website and can be accessed here. Comment can be submitted via the website or to the Secretariat of the ASB at info@asb.co.za by 30 November 2020.

The views expressed in this article are those of Secretariat and not the ASB Board.