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Update: FAQs on the Standards of GRAP

  • June 4, 2025
  • Posted by: Julianne Vissie
  • Category: Blog
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The ASB completed its research on the issues and needs of stakeholders in the local environment with respect to measuring assets and liabilities. The research will be used to set the landscape for the development of a Standard of GRAP on Measurement.

Minor issues have been addressed in amending and developing the FAQs. Below is a summary of these issues and the FAQs that respond to it.

Issue raised   FAQ

Misunderstanding on how the indicator-based assessment for impairment of non-monetary assets is intended to be applied. Entities calculate impairment at every year end and not when indicators are present.

 New FAQ 3.20 on When and how should entities assess for impairment in terms of GRAP 21 and GRAP 26? has been developed.

Impairment indicators are present but instead of calculating an impairment loss, entities adjust the useful life of the asset.

Entities assess the entire population of assets for impairment when one item in that asset class is impaired.

Different accounting treatments applied in practice when accounting for concessionary leases. The Standards of GRAP do not specifically provide guidance on concessionary leases.

FAQ 5.3 on Do in-kind benefits only involve goods and services provided by individuals and how should in‑kind benefits be accounted for? has been updated.
Entities are uncertain about the accounting for land that is illegally occupied where the land is carried on the fair value model. Impairment is not applicable to land carried on the fair value model.

FAQ 3.9 on Do land invasions affect whether an entity recognises land? has been updated.
Entities impair land to Rnil where the land is illegally occupied.

The FAQs are available on the ASB website.

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.



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