The current Standard of GRAP on Financial Instruments (GRAP 104) will be replaced with a new version of the Standard, effective for reporting periods that commence on or after1 April 2025.
Why is GRAP 104 being replaced?
GRAP 104 was primarily drawn from the pronouncements issued by the International Accounting Standards Board (IASB) when it was developed by the Board in 2009. Following amendments by the IASB to their financial instruments guidance, the Board updated the local guidance with the international thinking.
The Board simplified the local requirements in accounting for financial instruments wherever possible, for example by excluding guidance on hedge accounting as only a limited number of local entities apply the guidance. The Board also included principles that are suitable for and prevalent in the public sector, for example, guidance on concessionary loans received or granted by government or its entities.
The changes to the Standard will be discussed in more detail in upcoming articles.
Supporting entities with adopting GRAP 104 (2019)
A GRAP 104 Reference Group, comprising technical experts, auditors, preparers and other interested parties, supports entities with the adoption of GRAP 104 (2019). This Reference Group is instrumental in the development of various Fact Sheets to assist entities with the adoption of GRAP 104 (2019). Other issues and possible solutions discussed by the GRAP 104 Reference Group are communicated to stakeholders through various mechanisms such as Frequently Asked Questions and presentations.
Access this guidance 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.