News from the last ASB 2023 Board meeting

The Accounting Standards Board (ASB) held its final meeting for 2023 on the 1^st of December. Two pronouncements were considered and approved at this meeting, namely revisions to the Standards of GRAP dealing with transfer of functions and mergers and an Invitation to Participate in the Board’s next post-implementation review (PIR).

Revisions to the Standards on transfer of functions and mergers

The ASB considered the key issues raised by stakeholders during the public consultation process. The Board approved the revisions to GRAP 105 on Transfer of Functions Between Entities Under Common Control, GRAP 106 on Transfer of Functions Between Entities Not Under Common Control and GRAP 107 on Mergers. An effective date of 1 April 2026 will be proposed to the Minister of Finance.

The Secretariat will develop two Frequently Asked Questions (FAQ) to respond to issues raised by stakeholders during the consultation process. The first question will explain the difference between transitional provisions and the measurement period, while the second FAQ will provide guidance on when an asset and/or liability qualifies for recognition in a transfer of functions or merger. 

PIR of GRAP 108 on Statutory Receivables

The ASB approved the Invitation to Participate in the Post-implementation Review of GRAP 108. This Exposure Draft will be used to engage stakeholders on whether GRAP 108 is achieving its intended objectives and to identify challenges with the application of the Standard. The PIR will also assess if GRAP 108 provides relevant information to users of the financial statements to make decisions and hold entities accountable.

The consultations on GRAP 108 will continue until the 27^th of October 2024.

Other technical discussions

Use of the Conceptual Framework for General Purpose Financial Reporting (GRAP Conceptual Framework)

The GRAP Conceptual Framework outlines the key concepts and principles used in the Standards of GRAP. It is primarily a tool to be used by the ASB Board to develop Standards and other pronouncements.

The Board considered various high-level issues that arose since the publication of the new GRAP Conceptual Framework. The Board confirmed the following:

• The principles in the new GRAP Conceptual Framework will be used to guide the development of all future pronouncements that are not based on an international equivalent. The basis for conclusions to the new pronouncement will explain the Board’s key deliberations on how the new GRAP Conceptual Framework was applied.
  
• Many existing pronouncements are based on an IPSAS or IFRS equivalent. These are frequently based on an older version of the Conceptual Framework. Where a Standard of GRAP is based on these IPSAS or IFRS no changes will be made to the Standards of GRAP until the IPSASB makes changes to the equivalent IPSAS.

• To clarify the use of the previous and new GRAP Conceptual Framework, a FAQ will be developed to explain how the two GRAP Frameworks should be read with the Standards of GRAP.

Keep an eye out for more articles on the latest approved pronouncements that will be published on the Board’s website and social media in 2024.

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.