1 / 23

Implementation of the Standards of GRAP for 2012/13

Implementation of the Standards of GRAP for 2012/13. Presented by Jeanine Poggiolini. Disclaimer.

melania
Télécharger la présentation

Implementation of the Standards of GRAP for 2012/13

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Implementation of the Standards of GRAP for 2012/13 Presented by Jeanine Poggiolini

  2. Disclaimer The views and opinions expressed in this presentation are those of the individual. Official positions of the ASB on accounting matters are determined only after extensive due process and deliberation.

  3. Overview Outline of the Standards of GRAP effective for the 2012/13 period. Transitional arrangements. Possible implementation issues. Availability of additional material.

  4. Newly effective Standards of GRAP

  5. Adoption of new Standards • New Standards of GRAP – Effective for financial years commencing on or after 1 April 2012: • GRAP 21 – Impairment of NCG assets • GRAP 23 – Non-exchange revenue • GRAP 24 – Budget information • GRAP 26 – Impairment of CG assets • GRAP 103 – Heritage assets • GRAP 104 – Financial instruments

  6. Adoption of new Standards • Based on past practices, anticipated that major changes will be on GRAP 23, 24, 103 and 104. • It is critical that you plan early!

  7. Adoption of new Standards • GRAP 23 • Accounting for all non-exchange revenue e.g. taxes, fines, transfers (including equitable share allocations, grants, goods and services received in-kind). • Transitional provisions  retrospective; adjust for differences in accounting policy.

  8. Adoption of new Standards • GRAP 23 • Previously municipalities would have used GAMAP 9. • Under GAMAP 9, may have deferred revenue using ‘matching’ – approach different under GRAP 23.

  9. Adoption of new Standards GRAP 23 vs GAMAP 9 Examine transfer and grant agreements and identify whether restrictions or conditions exist: “Conditions” involve both a performance and a return obligation. “Restrictions” are performance obligations only.

  10. Adoption of new Standards GRAP 23 vs GAMAP 9 Adjustments required on initial recognition: If conditions do not exist, derecognise any liabilities recognised in the past by adjusting accumulated surplus and amending comparatives. If conditions to exist, recognise liabilities.

  11. Adoption of new Standards GRAP 23: Other areas that may be affected: Taxes Fines Goods in-kind Required to recognise at fair value Services in-kind Encouraged disclosure of fair value Undertake a gap analysis for disclosures FAQs on website

  12. Adoption of new Standards • GRAP 24 • GRAP 24 outlines requirements for the comparison of budget and actual information in the financial statements. • Municipalities would have complied with the requirements of GRAP 1 – placement and content of comparison different. • GRAP 24 requires more detailed comparison & specific disclosures.

  13. Adoption of new Standards • GRAP 24 • Comparison of originally approved and final budget. • Comparison of budget to actual info on comparable basis (basis, classification & entities) to the budget. • Presentation of comparison – vary depending on budgetary basis used. • Reasons for variances.

  14. Adoption of new Standards GRAP 24 Need to understand differences between bases used to prepare actual and budget information. Develop policies and processes to ensure comparison & comply with detailed disclosure requirements. Note: Applied prospectively.

  15. Adoption of new Standards • GRAP 103 • GRAP 103 requires heritage assets to be recognised & measured and specific disclosures required. • Previously no mandatory accounting requirements for heritage assets.

  16. Adoption of new Standards • GRAP 103 • Transitional provisions are retrospective  Need to adjust for differences in accounting policy. • 3 years within which to comply with measurement requirements.

  17. Adoption of new Standards • GRAP 103 • Effect of transitional provisions: • Must have opening balances at 1 April/1 July 2012 (and comparative period). • Criteria to distinguish heritage and other assets. • Take inventory of assets for opening balances. • Develop measurement methodologies.

  18. Adoption of new Standards • GRAP 104 • Prescribes accounting requirements for financial instruments. • Similar to IAS 32, 39 and IFRS 7 – simplifications made to: • Categories of financial assets. • Accounting for financial guarantees. • Disclosure requirements.

  19. Adoption of new Standards • GRAP 104 • Transitional provisions, except where indicated  retrospective, therefore adjust for differences in accounting policy. • Adjust accounting for financial guarantees. • Categorisation of financial assets applied prospectively – need to know on 1 April/1 July 2012 what intention is with holding instrument & document fair value or carrying value which will be o/balance.

  20. Adoption of new Standards • GRAP 104 • Understand what encouraged disclosures under GRAP 104 will be useful to users.

  21. Adoption of new Standards • General: • One page summaries on ASB’s website • FAQs • GRAP Guides & range of tools issued by the OAG

  22. Recently issued Standards • GRAP 18 – Segment Reporting • GRAP 20 – Related Party Disclosures • GRAP 105-107 – Transfers of Functions and Mergers • Not yet effective: • Can use GRAP 105-107 for 11/12 to inform policies. • Can use GRAP 20 for 12/13 to inform disclosures.

  23. Contacts www.asb.co.za Info@asb.co.za 011 697 0660 (office) 011 697 0666 (fax)

More Related