Best Accounting Practices

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13 Δεκ 2013 (πριν από 3 χρόνια και 8 μήνες)

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Best Accounting Practices

Update on Standards of
GRAP

Erna Swart









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
.

Overview


Reporting Framework for 2013/2014


Overview of latest pronouncements
issued by ASB


Improvements to Standards of GRAP and
amendments to GRAP 23 (ED 112 and ED 113)


Changes in Measurement Bases following the
Initial Adoption of Standards of GRAP (ED 114)


Standard of GRAP on Statutory Receivables
(GRAP 108)


Overview of other projects

GRAP Reporting Framework

Snapshot
-

Reporting framework

30 June 2012

30 June 2013

30 June 2014


GRAP

Improved
Standards of GRAP
& IGRAPs (2011)

Report in terms of new
Standards:

GRAP 21, 23, 24, 26,
103 and 104 (effective
from 1/4/2012)

Report in terms of new
Standards:

GRAP 1, 3, 7, 9, 12, 13,
16,17,25,27,31

IGRAP 1, 16

IFRS/

IPSAS

No IFRS 3

(IFRS 4 and 6)

No change

IFRIC 20

Not yet
effective

Accounting policy
(IFRS or GRAP):


GRAP 21, 26, 25,
104


GRAP 103
(voluntary)

Accounting policy:


GRAP 105
-
107

Other Standards
effective not yet effect

Accounting policy (IFRS
or GRAP:


GRAP 25

Accounting policy:


GRAP 105
-
107

Disclosure

GRAP 20 or IPSAS 20

Accounting policy:


GRAP 105
-
107

Disclosure:


GRAP 20 or IPSAS 20


Not
applicable

No change

No change

GRAP 18

Reporting Framework for
2013/14


GRAP Reporting Framework 2013/2014


New effective Standard


GRAP 25 effective from 1 July 2013)


Improvements 2012 (effective 1 July 2013)


Minor improvements affecting GRAP 1, 3, 7, 9, 12,
13, 16 and 17


GRAP 101 and GRAP 102
-

revised and replaced
by GRAP 27 and 31


IGRAP 1 (revised) and IGRAP 16

Overview of latest
pronouncements issued by
the ASB

Proposed Improvements to
Standards of GRAP (ED 112)


Bi
-
annual improvements to effective
Standards of GRAP


Minor non
-
urgent revisions


Includes amendments to 6 new effective
Standards of GRAP


GRAP 5 and GRAP 100 excluded from
Improvements project

Standards affected by
improvements project

GRAP

Standard

Affected paragraphs

GRAP 1

Presentation of Financial

Statements

11,

44, 44A
-
44D, 45A
-
45D, 46, 48, Appendix

GRAP 2

Cash Flow

Statements

Appendix

GRAP 3

Accounting Policies, Changes in
Accounting Estimates & Errors

Appendix

GRAP 7

Investments in Associates

Appendix

GRAP 10

Financial Reporting in Hyperinflationary
Economies

01, 06,

Appendix

GRAP

11

Construction Contracts

Appendix

GRAP 13

Leases

Appendix


GRAP 17

Property, Plant

and Equipment

06, 08,

29

GRAP 19

Provisions,

Contingent Liabilities &
Contingent Assets

Appendix

Standards affected by
improvements project

GRAP

Standard

Affected paragraphs

GRAP 21

Impairment of Non
-
cash
-
generating

Assets

09, 09A, .10
-
14, 17, 21,
22, 32, 76, 77,Appendix

GRAP 24

Presentation of Budget Information in
Financial Statements

06,

22, Appendix

GRAP 25

Employee Benefits

08, 53, 123,

Appendix

GRAP 26

Impairment of Cash
-
generating
Assets

10, 10A, 11
-
15, 22, 25,
27, 79, 99, 119, Appendix

GRAP 31

Intangible

Assets

73,

78, 85, 85A, 111,
Appendix

GRAP 103

Heritage

Assets

02, 03, 11, 16, 26, 27,
32A
-
B,

35, 53, 54, 55, 80
-
82

GRAP 104

Financial Instruments

84, 84A, 86, 88, Appendix

Proposed Amendments to
GRAP 23 (ED 113)


Mandatory recognition of services in
-
kind


to the extent that services received are
significant

to an entity’s
operations and/or
service delivery objectives

and
recognition
criteria
is met


Clarification that services in
-
kind are not
limited to services provided by individuals
but include right to use the assets

Proposed once
-
off change to
measurement bases (ED 114)


Proposal to allow entity to change its
measurement bases from fair value or
revaluation to cost method


Once
-
off change when inappropriate
accounting policy was elected on initial
adoption of Standards of GRAP


Limited effective date

Statutory receivables

(GRAP 108)


GRAP 108 applies to recognition,
measurement and disclosure


Statutory receivables


receivables that arises from legislation,
supporting regulations or similar means and


require settlement by another entity in cash or
another financial asset


Can be an exchange or non
-
exchange
transaction


Statutory receivables

(GRAP 108)


Initial recognition


At transaction amount


Apply either GRAP 9 or GRAP 23


Subsequent measurement


Cost method


Reflect any interest or other charges accrued,
impairment losses or amounts derecognised

Overview of other projects

Post
-
implementation Review


Respondents to DP 5 requested the ASB to
consider whether any further simplifications
could be made to Standards.


ASB agreed that further changes can only be
made by assessing users’ information needs.


Review focuses on:


Whether users information needs met by GRAP
(limited to GRAP 16 and 17 as a pilot project)


Preparers comment on experiences in applying
GRAP Standards.

Post
-
implementation Review


Project involves extensive consultation (in
various ways) with users and preparers.


Undertaken for 6 months, commencing end
June/July.


Results will be used to assess possible
actions by the ASB, OAG or other entities.

Think Piece on Materiality


Misunderstanding and misapplication of
materiality.


Results in a “compliance” culture rather than
responding to users’ information needs.


Paper focus on the following:


How ASB considers materiality in the standard
setting process


How preparers should consider materiality in
applying Standards of GRAP

Think Piece on Materiality



How preparers should apply materiality when
deciding on information to be disclosed.


How auditors consider materiality in audit
process.



Possible outcome may be a Standard issued
by ASB, or a Guideline (or something similar)
issued by the OAG

Contacts


www.asb.co.za


Info@asb.co.za


011 697 0660 (office)


011 697 0666 (fax)