The current Standard of GRAP on Financial Instruments (GRAP 104) will be replaced with a new version of the Standard as from 1 April 2025.
Why is GRAP 104 being replaced?
When GRAP 104 was developed by the Board in 2009, it was primarily drawn from the pronouncements issued by the International Accounting Standards Board (IASB) at the time. Since then the IFRS Accounting Standard on Financial Instruments (IFRS 9) substantially revised the way in which financial instruments are classified and how and when they are assessed for impairment. The new classification guidance is principle-based. The revised impairment model provides better information to users as it does not only consider historical information, but also current and expected future events and circumstances to assess impairment. The Board agreed that these changes should also be included in local guidance.
In updating its financial instrument guidance, the Board agreed to simplify the local requirements in accounting for financial instruments wherever possible, and to include principles that are suitable for and prevalent in the public sector.
The changes to the Standard will be discussed in more detail in upcoming articles.
Supporting entities with adopting GRAP 104 (2019)
To support entities with the adoption of GRAP 104 (2019), a GRAP 104 Reference Group, comprising technical experts, auditors, preparers and other interested parties, was established.
The issues and possible solutions discussed by the GRAP 104 Reference Group are communicated to stakeholders through various mechanisms that include Frequently Asked Questions, Fact Sheets and presentations. This guidance is available on the ASB’s website: Financial Instruments (revised 2019) – ASB.
Disclaimer
The article 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.