GRAP updates for 2015/16


Involve Consulting has specifically prepared and customisable course material for compliance to GRAP in the 2015/2016 financial years, which includes:

• an overview of the accounting reporting frameworks for South African public sector entities effective for the 2015/16 financial year;

• detail on the approved and effective Standards of GRAP: 


   o GRAP 32: Service Concession Agreements

   o GRAP 105 Transfers of functions between entities under common control

   o GRAP 106 Transfers of functions between entities not under common control

   o GRAP 107 Mergers

   o IGRAP 17 SCA where Grantor Controls Significant Residual Interest

   o The relevant transitional provisions, including implementation guidance;

Read more: GRAP updates for 2015/16

Heritage Assets

The process of complying to GRAP 103 requires the following steps:

• Identification of possible Heritage Assets

• Physical verification

• Valuation (with specialists depending on the type of HA)

• Financial accounting

• HA policy update


The measurement period ends as soon as entities receive the information it was seeking about facts and circumstances that existed at 1 April 2012 (PFMA) / 1 July 2012 (MFMA), or learn that no more information is obtainable. However, the measurement period shall not exceed 3 years from 1 April 2012 (PFMA) / 1 July 2012 (MFMA).

The above-mentioned ASB Directives thus makes it clear that entities have 3 years in which to comply with the measurement requirements of GRAP 103, but at the end of these 3 years have to ensure that all heritage assets for which measurement is possible are measured retrospectively:

• initially at its cost or

• at fair value where heritage assets are acquired through a non-exchange transaction.


This means that entities have to include in their 2014/15 AFS the following amounts for its heritage assets: the current year, comparative year (2013/14) and comparative year’s opening balances (2012/13) pertaining to its heritage assets. If an entity early adopted GRAP 103, the above years will be amended accordingly.


Involve Consulting, together with its partners at Rubix Cube, could assist you with preparing a fully GRAP compliant Heritage Asset register in terms of GRAP 103.


Contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. for more information

SCM Oversight training

Involve Consulting invites you to a 1 day SCM training session that will focus on:

  • Public Sector SCM Regulations
  • Demand management
  • Acquisition management
  • Logistics management
  • Disposal management
  • Risk management
  • Assessment of SCM Performance
  • SCM Policy requirements
  • The bidding process
  • Evaluation of bids and scoring templates*
  • Supplier database
  • SCM delegations
  • Ethics, Social Responsibility and Sustainability


Read more: SCM Oversight training

Directive 11 - Changes in measurement bases

Changes in measurement bases following the initial adoption of the Standards of GRAP

Background information

In terms of GRAP 17, property, plant and equipment, par 32 that an entity shall choose either the cost model or the revaluation model as its accounting policy and shall apply that policy to an entire class of property, plant and equipment.

Also, in terms of GRAP 16, Investment Property, par 36 an entity shall choose as its accounting policy either the fair value model or the cost model and shall apply that policy to all of its investment property. GRAP 3 on Accounting Policies, Changes in Accounting Estimates and Errors sets out circumstances when an entity may change its accounting policy. Paragraph .13 of GRAP 3 on Accounting Policies, Changes in Accounting Estimates and Errors allows an entity to change its accounting policy only if the change: (a) is required by a Standard of GRAP; or (b) results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entity’s financial position, financial performance or cash flows. It is deemed that an entity cannot return to the cost model after selecting the revaluation model for PPE or the Fair Value model for Investment Property. This is as the initial changes to these models were in order to reflect more relevant information about the effects of transactions.

Implication of Directive 11

Directive 11 of the ASB can be applied by entities that apply Standards of GRAP. This Directive can only be applied when an entity elects to change the measurement bases selected for certain assets on the initial adoption of Standards of GRAP. Directive 11 allows an entity that has initially adopted the fair value model or the revaluation model, to change its accounting policy on a once-off basis back to the cost model when the entity elects to change its accounting policy following the initial adoption of these Standards of GRAP. The once-off change will be allowed when the entity made an inappropriate accounting policy choice on the initial adoption of the Standards of GRAP. This once-off change in the accounting policy allowed by the ASB in Directive 11 is applicable to: GRAP 16 – Investment Property GRAP 17 – Property, Plant and Equipment GRAP 31 – Intangible assets GRAP 103 – Heritage assets As per all other changes in the accounting policy of an entity, an entity shall apply the change in accounting policy retrospectively and provide disclosures that will ensure that the information enclosed in the financial statements is relevant and reliable.

Read more: Directive 11 - Changes in measurement bases