At the latest Board meeting, a key discussion point was the consideration of stakeholder feedback on the Exposure Draft (ED) on amendments to the Directive on Determining the GRAP Reporting Framework and the subsequent approval of the final Directive. 

Stakeholders raised some key issues, including the following: 

Issue	Stakeholders’ concern	Board considerations
Application of pronouncements by other standard setters	Stakeholders raised concerns that entities are only permitted to apply standards and pronouncements issued by other standard setters which are included in the appendices of Directive 5, in the absence of an existing Standard of GRAP addressing a specific transaction or event.	Directive 5 and its related Annexures were essential when the suite of Standards of GRAP was incomplete. With the suite now substantially complete, entities are only expected to develop accounting policies in exceptional circumstances. The amendments ensure that entities do not compromise the application of the Standards of GRAP, thereby improving comparability across entities and the sector.
Application of amendments to Standards of GRAP	Stakeholders raised concerns about entities not being permitted to use amendments to Standards of GRAP, before the Minister of Finance determines an effective date for the amendments, in developing their accounting policies.	The Minister of Finance is the authorised body for approving both the Standards of GRAP and any amendments to the Standards. Consequently, entities should not use requirements (amendments) that have not yet been approved by the Minister of Finance to amend existing accounting policies that are based on Standards of GRAP approved by the Minister of Finance. Amendments may be early adopted in full once the Minister of Finance determines an effective date.
Distinction between new and amended Standards of GRAP	Stakeholders highlighted a potential challenge in distinguishing between new and amended Standards of GRAP.	The Directive includes definitions of what constitutes a new Standard of GRAP versus an amendment to a Standard.  The Board considers both minor and significant changes to Standards to meet the definition of “amendments to Standards of GRAP”. From 2025/26, the Annexures to the Directive will specify which Standards are new and which are amended.
Transitional provisions	Stakeholders emphasised the need for transitional provisions when an entity develops an accounting policy based on Standards that are not yet effective.	Transitional provisions apply to the initial adoption of a Standard of GRAP, rather than to the development of accounting policies using a new Standard. GRAP 3 applies to the development of accounting policies.

The Board’s decisions aim to ensure the appropriate application of the Standards of GRAP. These amendments reflect the Board’s commitment to maintaining clear and comprehensive guidance within Directive 5. 

For more detailed information on the approved amendments to Directive 5 visit the ASB website.