GRAP – Fundamental Concepts

Overview

Municipalities and public entities prepare their financial statements in terms of Standards of Generally Recognised Accounting Practices (GRAP); therefore, it is a necessity for public sector finance officials to have an understanding of the Standards of GRAP Fundamental Concepts are kept up to date with key changes in the standards.

GRAP Fundamental Concepts provides detailed and in-depth knowledge for the implementation and financial reporting as required by the Generally Recognised Accounting Practice (GRAP) Standards, as applicable to South African public sector entities and their officials, as well as for the International Public Sector Accounting Standards (IPSAS) for the international public sector upon which the GRAP standards are based.

Apart from providing a common principle- based reporting framework for general purpose financial statements, Standards of GRAP promote accountability, transparency, and effective management of revenue, expenditure, assets and liabilities of the institutions to which the Standards apply. IFRS Principles help organizations achievement of these goals contributes towards government’s objectives in improving service delivery to the citizens of our country.

TARGET COMPETENCIES:

At the end of the GRAP Fundamental Concepts training delegates will learn to be able to:?

GRAP Standards?

Provide a theoretical background with examples and scenarios that will assist accounting officers with obtaining a detailed understanding of the GRAP Standards?

Explain and apply the conceptual framework underlying GRAP?

Present separate periodic financial statements in accordance with GRAP?

Accounting standards and the legislative framework?

IFRS?

Learn how to prepare IFRS financial statements, including statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity?

Differentiate between changes in estimates and changes in accounting policies?

Improve knowledge and understanding of the global trends for International Financial Reporting Standards?

Understand recent changes in IFRS that came into effect on the 1st of January, and practicalities of their application?

Comprehend the transition challenges and approaches in moving to Internationally accepted reporting norms of IFRS?

Training Methodology

Our Training Methodology to be utilized in the presentation of this course is primarily based on the adult learning principles that include:

• Pre-work to help learners prepare for the quality of the learning
• Group instruction, discussion and illustrative examples
• Practical workshop exercises using realistic scenarios, case studies, examples of best practice and the models, candidates can use back in the workplace
• All participants will receive a comprehensive manual containing copies of the presentation slides, handouts and other course materials

WHO SHOULD ATTEND?

GRAP Fundamental Concepts Course is ideal for you if you are:

·      Financial or non-financial official from public sector entities who applies GRAP/IPSAS, e.g. Municipal Managers,

·      Chief Financial Officers,

·      Departmental/Division Managers (e.g. Assets, Revenue, Expenditure etc.)

·      Officials involved in GRAP/IPSAS compliant Annual Financial Statements (AFS) compilation or processing of information included in the AFS, and

·      Officials in the employ of the National Treasury as well as the various Provincial Treasuries who advise and guide South Africa public sector entities in the application of GRAP.

COURSE OUTLINE:

This IFRS Training comprehensive accounting standards training course will enable each participant appreciate and understand the basics and certain complexities associated with international accounting standards along with topic terminology, concepts and applications.?

In gaining a perspective of the origins of IFRS, the accomplishments, to date, in the development and acceptance of global accounting standards and insights into the foreseeable future, participants will gain a valuable understanding of this critical field of knowledge and be capable of contributing meaningful assistance to their respective organisations with respect to the adoption and utilisation of these accounting standards.?

IFRS Overview?

The Global movement to IFRS?

·      Principles vs. rule-based approach to accounting?

·      US GAAP Convergence?

·      ?IFRS Core Concepts?

·      IAS 1 and Conceptual Framework?

·      Core concepts and principles?

·      Tackling measurement alternatives?

·      Recognition and derecognition principles?

·      Presentation and disclosure?

·      Application of the true and fair override?

·      Fundamental and enhancing qualitative characteristics of financial statements?

·      Materiality and aggregation?

·      Assets under IFRS?

·      Cost capitalization criteria?

·      Repairs and maintenance?

·      Component accounting and depreciation?

·      Revaluation methodology?

·      Establishing capitalization thresholds?

·      Decommissioning costs?

·      Guidance on self-constructed assets?

GRAP Reporting Framework?

·      New GRAPs

·      What is Generally Accepted Accounting Practice (GAAP)??

·      Standards approved and effective?

·      GRAP 1 – Presentation of Financial Statements

·      GRAP 3 - Changes in accounting estimates and errors

·      GRAP 5 - Borrowing Costs

·      GRAP 17 – Property, Plant and Equipment?

·      GRAP 26 – Impairment of Cash-Generating Assets?

·      GRAP 27 – Agriculture?

·      GRAP 31 – Intangible Assets?

·      GRAP 100? – Discontinued operations

Special focus areas Minister of Finance determined effective April (June) 2015:?

·      GRAP 105 – Transfer of Functions Between Entities Under Common?

·      GRAP 106 – Transfer of Functions Between Entities Not Under Common?

·      GRAP 107 ? - Mergers

Special focus areas?

·      Selecting accounting standards?

·      Preparing accounting policy notes?

·      Year-end calculations and journals?

·      Preparing disclosure notes?

?Standards in Development?

Reducing Complexity and Improving Financial – Reporting?

·      Awareness about role of materiality in preparing financial statements

·      Accounting for Living and Non-Living Resources?

·      Non-living – land, minerals and water?

·      Discussion: Success and failure factors in public service accounting?

·      Experiences in municipalities?

·      Open discussion