Accounting Standards Board Newsletter #4

Accounting Standards Board
Newsletter #4 - October 2023

In this edition of the Newsletter

A glimpse into the Reporting Framework for the 2024/25 financial year

Role and purpose of Directive 5

Directive 5 on Determining the Reporting Framework outlines the GRAP reporting framework for a particular reporting period. The Appendices of the Directive list the standards and pronouncements that are the GRAP Reporting Framework for a reporting period. The Appendices are updated each year.

Directives are authoritative and entities have to apply Directive 5 and the list of pronouncements in the applicable Appendix to prepare financial statements for a particular reporting period.

The Accounting Standards Board (the Board) approved the Appendix to Directive 5 for 2024/25 at the September 2023 meeting.

What were the changes for the 2024/25 financial year?

There are no new or amended pronouncements that are effective for financial periods commencing on or after 1 April 2024. The following pronouncements, approved by the Board, have not yet been approved for adoption by the Minister of Finance:

Pronouncement	Effective date
GRAP 1 on Presentation of Financial Statements (Amendments on going concern approved December 2022)	Effective date to be determined
GRAP 103 on Heritage Assets (Approved June 2022)	Effective date to be determined
Improvements to the Standards of GRAP 2023	Effective date to be determined.

What about pronouncements and changes to pronouncements that are not yet effective

The board recently approved changes to pronouncements that are not yet effective. Their impact on the 2024/25 GRAP Reporting Framework is as follows:

Pronouncement	Effective date	Impact on 2024/25
GRAP 104 on Financial Instruments (revised 2019)	1 April 2025	Entities may early adopt the Standard before the effective date. In this instance, the entire Standard needs to be adopted early. Piecemeal adoption is not permitted.
IGRAP 22 on Foreign Currency Transactions and Advance Consideration	1 April 2025	Entities may early adopt the Interpretation before the effective date.

What about pronouncements of international standard-setters?

The Appendices to Directive 5 include pronouncements issued by the IPSASB and IASB that entities should consider in preparing their financial statements for a particular reporting period. Pronouncements of other standard setters are used to formulate accounting policies; they cannot be adopted by entities. Any IPSAS or IFRS Accounting Standards not included in the relevant Appendix to Directive 5 should not be considered by entities in formulating accounting policies.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.

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