Part 7 – How committed are you?
We receive questions every year about whether the Standards of GRAP include a universal requirement to disclose commitments. The answer is no – there is no universal requirement.
GRAP 1 on Presentation of Financial Statements refers to the disclosure of unrecognised contractual commitments in paragraph .124(d)(i). However, this needs to be read in the context of the requirements of the other Standards to disclose commitments. As examples, the Standards of GRAP require the disclosure of commitments related to:
- Operating leases.
- The purchase, construction, development, or repairs and maintenance of investment property.
- The acquisition of property, plant and equipment and intangible assets.
- The acquisition, maintenance and restoration of heritage assets.
Useful links:
GRAP 1 on Presentation of Financial Statements: access.
Disclaimer
This content 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.