ASB stands for what?
Accounting Standards Board
GRAP stands for what?
Standards of Generally Recognised Accounting Practice
GAAP stands for what?
Statements of Generally Accepted Accounting Practice
GAMAP stands for
Standards of Generally Accepted Municipal Accounting Practice
IPSAS stands for
International Public Sector Accounting Standards
Provide the acronym for Annual Financial Statements
AFS
ABS sets standards of GRAP for the AFS for which organisations?
- Departments
- Public entities
- Constitutional institutions
- Municipalities and boards, commissions, companies, corporations, funds or other entities under the ownership control of a municipality; and - - Parliament and the provincial legislatures.
ABS promotes what?
The ASB promotes accountability, transparency and effective management of revenue, expenditure, assets and liabilities of institutions to which these GRAP’s apply
GRAP is about?
GRAP’s set out the recognition, measurement, presentation and disclosure requirements for AFS in the public sector of South Africa.
Provide the purpose of AFS
AFS are a structured representation of the financial position, performance and cash flows of an entity. These are useful to the users in making economic decisions.
AFS also show the results of management’s stewardship of the resources entrusted to it – NB for public sector!
This information useful for users in making assessments of an entity’s ability to continue to provide goods and services at a given level, and the level of resources that may need to be provided to the entity in the future so that it can continue to meet its service delivery obligations.
Provide the exemption from GRAP
Exemption from compliance with disclosure requirements when the relevant GRAP is applied for the first time will be considered by the Minister of Finance on a case by-case basis
GRAP’s are developed either:
- By adapting IPSAS’s (maintaining numbering + original text, unless significant SA public sector issue warrants departure); or
- By developing a GRAP to deal with a specific public sector issue (no IPSAS for it)
The reporting framework comprises of what?
- Standards of GRAP
- Guidelines + Directives +Interpretation sissued by ASB
- Standards of other standard setters (IFRS and IAS)
Who are the users of AFS?
- Taxpayers and ratepayers
- Members of legislature
- Creditors
- Suppliers
- The media
- Employees
Who are the primary users of the GRAP AFS?
Citizens of RSA receive services and provide resources to the government and public sector entities.
State the objective of Financial statements of GRAP 1
- Prescribe basis for presentation of general purpose financial statements,
- To ensure comparability both with
- entity’s fin. statements of previous periods and
- with AFS of other entities
State the purpose of the presentation of Financial Statements GRAP 1
- AFS are a structured representation of the financial position financial performance and cash flows of an entity
- Useful to users in making economic decisions
- Also show results of management’s stewardship of resources entrusted –level of resources needed –who provides?
A set of AFS consists of
- Statement of financial position
- Statement of financial performance
- Statement of changes in net assets
- Cash flow statement
- Comparison of budget and actual amounts
- Notes (policy and explanatory)
