What are Accounting Standards?
Accounting standards are authoritative standards for financial accounting and reporting developed through an organised standard-setting process and issued by a recognized standard setting body (the Accounting Standards Board (Board)). The accounting standards as set by the Board specify how transactions and other events are to be recognised, measured, presented and disclosed in government financial statements. The objective of such standards is to meet the needs of users of financial statements by providing the information needed for accountability and decision making.
Who should apply these Standards?
The Board must determine GRAP for the following institutions:
- Departments (including national and provincial and government components);
- Public entities;
- Trading entities;
- Constitutional institutions;
- Municipalities, municipal entities or any other entities under the ownership control of a municipality and, boards, commissions, companies, corporations and funds;
- Parliament and the provincial legislatures; and
- Public entities that meet the criteria outlined in the Directive on The Selection of an Appropriate Reporting Framework by Public Entities and entities under the ownership control of any of these entities.
The Board has approved the application of IFRS® Accounting Standards issued by the International Accounting Standards Board® for:
(a) public entities that meet the criteria outlined in the Directive on The selection of an Appropriate Reporting Framework by Public Entities; and
(b) entities under the ownership control of these entities.
The Board has the authority to set accounting standards for all spheres of government. The responsibilities of the Board are set out in its Regulations.
In meeting its objectives, the Board:
- Is committed to serve the public interest.
- Respects and encourages input from all its stakeholders.
- Brings objectivity to the consideration of issues.
- Respects the ability of its stakeholders to exercise professional judgment.
- Is committed to timeliness in its responses to stakeholder needs.
The Board normally meets four times a year for full Board meetings. The Board may have additional meetings to meet their objectives.
The Board consists of a maximum of 10 members including the Chair.
Focused stakeholder consultations are facilitated through project groups. Project groups members comprise of preparers, auditors, users, consultants, academics, and other interested parties.
Project group members volunteer to participate in the project group meetings based
on the following considerations:
- commitment to the Board objectives;
- technical knowledge;
- ability to consider the practical aspects of issues being considered; and
- ability to influence the adoption of Standards of GRAP and the building of
consensus on the Board’s positions.
The project group assists the Secretariat by reviewing draft pronouncements and
making recommendations to the Technical Committee. Minutes of meetings are
Secretariat of the Accounting Standards Board
The day to day operations of the Accounting Standards Board are managed by Chief Executive Officer, Mrs Jeanine Poggiolini and a professional team of six staff members.