Reflections from the September ASB Board meeting 

The Accounting Standards Board (ASB) recently considered several pronouncements for approval, including Improvements to the Standards of GRAP, 2023, IGRAP 22 on Foreign Currency Transactions and Advance Consideration, updates to the GRAP Reporting Framework (Directive 5) and considered the technical activities for 2024/25.  

Here are highlights of latest technical developments:  

Improvements to the Standards of GRAP, 2023  

The ASB discussed the key issues raised by stakeholders during the public consultation process and approved Improvements to the Standards of GRAP, 2023. The ASB will submit a proposed effective date of 1 April 2025 to the Minister of Finance for approval.  

IGRAP 22 on Foreign Currency Transactions and Advance Consideration  

The ASB approved IGRAP 22 on Foreign Currency Transactions and Advance Consideration, which will be effective for financial years commencing on or after 1 April 2025.  

Updates to the GRAP Reporting Framework (Directive 5) 

The ASB approved the Reporting Framework for 2024/2025, which updates Directive 5 on Determining the GRAP Reporting Framework for financial years starting on or after 1 April 2024.  

Technical Activities for 2024/25  

The ASB reviewed and approved the following project briefs for 2024/25:  

Review of GRAP 20 Related Party Disclosures 

• The purpose of the project is to assess compliance with the requirements of GRAP 20 on Related Party Disclosures and to obtain an understanding of how the Standard is being applied. The review will assist the Board to decide what actions should be taken, for example, whether changes to the Standard are required or guidance is needed to enhance the application of the Standard. 

Measurement of assets and liabilities in financial statements 

• The purpose of the project is to develop guidance on the measurement of assets and liabilities in the Standards of GRAP. As there is no Standard of GRAP on measurement, the aim of the project will be to develop a new Standard drawing from the IPSASB’s Standard on Measurement (IPSAS 46). The project will consider related amendments to the Conceptual Framework. Consultations with stakeholders will be necessary to test whether the adoption of new measurement principles from IPSAS 46 will be appropriate for the local environment. The project will also consider other measurement issues on assets and liabilities raised by stakeholders.  

The ASB Board meeting reflects the commitment of the ASB to continue developing and enhancing financial reporting standards that promote accountability, transparency, and effective financial management within all spheres of government.  

Keep an eye out for articles on the latest approved pronouncements that will be published on the ASB website and social media throughout the month.

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.