SAICA - Comparison of GRAP and IFRS

Comparison of
Standards of Generally Recognised

Accounting Practice (GRAP)
and
International Financial Reporting
Standards (IFRS)
October 2019
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THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS
Copyright in all publications originated by The South African Institute of Chartered

Accountants rests in the Institute. Apart from the extent reasonably necessary for the
purposes of research, private study, personal or private use, criticism, review or the reporting
of current events, as permitted in terms of the Copyright Act (No. 98 of 1978), no portion may
be reproduced by any process without written permission.
ISBN 978-0-86983-433-6
THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS

PRIVATE BAG X32 NORTHLANDS 2116
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Every effort has been made to ensure that this document is correct. Nevertheless this document
is given purely as guidance to members of SAICA to assist them with particular problems relating
to the subject matter and SAICA will have no responsibility to any person for any claim of any
nature whatsoever which may arise out of or relate to the contents of this document.
Comparison of
Standards of Generally Recognised Accounting Practice (GRAP)
and
International Financial Reporting Standards (IFRS)
What are Standards of Generally Recognised Accounting Practice?
In South Africa, the Accounting Standards Board (ASB) is required in terms of the Public
Finance Management Act 1 of 1999, as amended (PFMA), to determine generally recognised
accounting practice referred to as Standards of GRAP.
The ASB determines Standards of GRAP for:

(a) Departments (including national, provincial and government components)
(b) Public entities;
(c) Trading entities (as defined in the PFMA);
(d) Constitutional institutions;
(e) Municipalities and boards, commissions, companies, corporations, funds or other
entities under the ownership control of a municipality;
(f) Parliament and provincial legislatures.
The ASB has approved the application of IFRS for:

(a) Public entities that meet the criteria outlined in the Directive on the Selection of an
Appropriate Reporting Framework for Public Entities; and
(b) Entities under the ownership control of any of these standards.
The GRAP Reporting Framework is based on the hierarchy outlined in paragraph 11 of the
Standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors
(GRAP 3). Paragraph 11 states that, in the absence of a Standard of GRAP dealing with a
particular transaction or event, the accrual based pronouncements of the following standard
setters should be used, in descending order, to develop an appropriate accounting policy:
a) International Public Sector Accounting Standards Board (IPSASB), including the
Conceptual Framework for General Purpose Financial Reporting by Public Sector
Entities.
b) International Accounting Standards Board (IASB), including the Conceptual
Framework for Financial Reporting.
c) Financial Reporting Standards Council (FRSC).
This should only be done to the extent that the requirements are not in conflict with the
Standards of GRAP or the Framework for the Preparation and Presentation of Financial
Statements.
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When there is no equivalent Standard of GRAP, an International Public Sector Accounting
Standard (IPSAS) or IFRS Standard should be used in formulating an accounting policy,
unless:
a) that IPSAS or IFRS Standard is in conflict with the current ASB Framework for the
Preparation and Presentation of Financial Statements or existing Standards of GRAP;
or
b) it is not applicable to entities that currently apply the Standards of GRAP.
Financial statements should be described as complying with Standards of GRAP only if they
comply with all the requirements of each applicable Standard and any related Interpretations
of the Standards of GRAP
Standards of GRAP and Interpretations of the Standards of GRAP should be read in

conjunction with any directives issued by the Accounting Standards Board prescribing
transitional provisions, as well as any regulations issued by the Minister of Finance regarding
the effective dates of the Standards, published in the Government Gazette.
What are International Financial Reporting Standards?
The International Accounting Standards Board (IASB) is the independent, accounting

standard-setting body of the IFRS Foundation. The IASB has complete responsibility for
technical matters, including the preparation and issuing of IFRS Standards. IFRS sets
common rules so that financial statements can be consistent, transparent and comparable
around the world.
IFRS are mandatory pronouncements and comprise:

(a) IFRS;
(b) IAS; and
(c) Interpretations developed by the IFRS Interpretation Committee (IFRIC) or its
predecessor body, the Standing Interpretations Committee (SIC Interpretation)
Standards of GRAP with no IFRS equivalents
 GRAP 21 – Impairment of non-cash generating assets

 GRAP 23 – Revenue from non-exchange transactions
 GRAP 24 – Presentation of Budget Information in Financial Statements
 GRAP 103 – Heritage Assets
 GRAP 105 – Transfer of functions between Entities Under Common Control
 GRAP 106 – Transfer of functions between Entities Not Under Common Control
 GRAP 107 – Mergers
 GRAP 108 – Statutory Receivables
 GRAP 109 – Accounting by Principals and Agents
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Standards of GRAP with IFRS equivalents
Standard of GRAP IFRS

The Conceptual Framework for General Conceptual Framework for Financial
Purpose Financial Reporting Reporting
GRAP 1 - Presentation of Financial IAS 1 - Presentation of Financial
Statements Statements
GRAP 2 - Cash Flow Statements IAS 7 - Statement of Cash Flows
GRAP 3 - Accounting Policies, Changes in IAS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors Accounting Estimates and Errors
GRAP 4 - The Effects of Changes in IAS 21 - The Effects of Changes in Foreign
Foreign Exchange Rates Exchange Rates
GRAP 5 - Borrowing Costs IAS 23 - Borrowing Costs
GRAP 6 Consolidated and Separate IAS 27 Separate Financial Statements
Financial Statements IFRS 3 - Business Combinations
GRAP 7 - Investments in Associates IAS 28 - Investments in Associates and
Joint Ventures
GRAP 8 - Interest in Joint Ventures IFRS 11 - Joint Arrangements
IAS 28 - Investments in Associates and
Joint Ventures
GRAP 9 - Revenue from Exchange IFRS 15 - Revenue from Contracts with
Transactions Customers
GRAP 10 – Financial Reporting in IAS 29 – Financial Reporting in
Hyperinflationary Economies Hyperinflationary Economies
GRAP 11 - Construction Contracts IAS 11 - Construction Contracts
GRAP 12 - Inventories IAS 2 - Inventories
GRAP 13 – Leases IFRS 16 - Leases
GRAP 14 - Events After the Reporting Date IAS 10 - Events after the Reporting Period
GRAP 16 - Property, Plant and Equipment IAS 16 - Property, Plant and Equipment
GRAP 17 - Investment Property IAS 40 - Investment Property
GRAP 18 - Segment Reporting IFRS 8 - Operating Segments
GRAP 19 - Provisions, Contingent Liabilities IAS 37 - Provisions, Contingent Liabilities
and Contingent Assets and Contingent Assets
GRAP 20 - Related Party Disclosures IAS 24 - Related Party Disclosures
GRAP 25 - Employee Benefits IAS 19 - Employee Benefits
GRAP 26 - Impairment of Cash-generating IAS 36 - Impairment of Assets
assets
GRAP 27 - Agriculture IAS 41 - Agriculture
GRAP 31 - Intangible Assets IAS 38 - Intangible Assets
GRAP 32 – Service Concession IFRIC 12 – Service Concession
Arrangements: Grantor Arrangements
GRAP 100 - Discontinued Operations IFRS 5 - Non-current Assets Held for Sale
and Discontinued Operations
GRAP 104 - Financial Instruments IFRS 7 - Financial Instruments: Disclosures
IFRS 9 - Financial Instruments
IAS 32 - Financial Instruments:
Presentation
IAS 39 - Financial Instruments: Recognition
and Measurement
(Superseded by IFRS 9 where IFRS 9 is
applied)
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References:
1. Accounting Standards Board website
2. International Accounting Standards Board website
Page 6 of 6

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Comparison of

Standards of Generally Recognised

THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS

Copyright in all publications originated by The South African Institute of Chartered

THE SOUTH AFRICAN INSTITUTE OF CHARTERED ACCOUNTANTS

What are Standards of Generally Recognised Accounting Practice?

The ASB determines Standards of GRAP for:

The ASB has approved the application of IFRS for:

Standards of GRAP and Interpretations of the Standards of GRAP should be read in

What are International Financial Reporting Standards?

The International Accounting Standards Board (IASB) is the independent, accounting

IFRS are mandatory pronouncements and comprise:

Standards of GRAP with no IFRS equivalents

 GRAP 21 – Impairment of non-cash generating assets

Standard of GRAP IFRS

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