JSE proactive monitoring report – is it relevant to the public sector?

The PSAF noted that the following key findings from the JSE’s review may also be applicable to the Standards of GRAP:

• Inadequate disclosure of judgements and estimates – including for the cash flow statement, fair value calculations, and the factors considered and reasons supporting the conclusion that the entity was a going concern.
• Materiality – an entity’s materiality framework needs to be robust enough to demonstrate that the treatment in question is appropriate under the Standards. Qualitative assessments should receive more attention.
• Inappropriate classification of items:
  • Between operating, investing and financing activities in the cash flow statement.
  • Of related party transactions between financial instruments and contributions from owners.
  • Of assets – the PSAF was reminded of the asset classification decision tree for Standards of GRAP (https://www.asb.co.za/asset-decision-tree/).

Access the full JSE report – here.

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.