Revised FAQ on How does an entity account for naturally occurring non-purchased water?

Guidance from GRAP 110 on Living and Non-living Resources were added to assist stakeholders with how and up to which point GRAP 110 applies to naturally occurring water. On extraction of the water, an entity should assess whether GRAP 12 on Inventories applies.

In the absence of specific guidance in the Standards of GRAP on the initial measurement of non-purchased water, the FAQ refers to guidance in GRAP 12 to enable entities to develop their own accounting policies. Entities should initially measure naturally occurring non-purchased water at the:

• costs incurred to bring the inventory to its current location and condition including related infrastructure costs; plus
• conversion costs.

Access the FAQ here.