GRAP

Question 1

ASB stands for what?

Answer 1

Accounting Standards Board

Question 2

GRAP stands for what?

Answer 2

Standards of Generally Recognised Accounting Practice

Question 3

GAAP stands for what?

Answer 3

Statements of Generally Accepted Accounting Practice

Question 4

GAMAP stands for

Answer 4

Standards of Generally Accepted Municipal Accounting Practice

Question 5

IPSAS stands for

Answer 5

International Public Sector Accounting Standards

Question 6

Provide the acronym for Annual Financial Statements

Answer 6

AFS

Question 7

ABS sets standards of GRAP for the AFS for which organisations?

Answer 7

• Departments
• Public entities
• Constitutional institutions
• Municipalities and boards, commissions, companies, corporations, funds or other entities under the ownership control of a municipality; and - - Parliament and the provincial legislatures.

Question 8

ABS promotes what?

Answer 8

The ASB promotes accountability, transparency and effective management of revenue, expenditure, assets and liabilities of institutions to which these GRAP’s apply

Question 9

GRAP is about?

Answer 9

GRAP’s set out the recognition, measurement, presentation and disclosure requirements for AFS in the public sector of South Africa.

Question 10

Provide the purpose of AFS

Answer 10

AFS are a structured representation of the financial position, performance and cash flows of an entity. These are useful to the users in making economic decisions.
AFS also show the results of management’s stewardship of the resources entrusted to it – NB for public sector!
This information useful for users in making assessments of an entity’s ability to continue to provide goods and services at a given level, and the level of resources that may need to be provided to the entity in the future so that it can continue to meet its service delivery obligations.

Question 11

Provide the exemption from GRAP

Answer 11

Exemption from compliance with disclosure requirements when the relevant GRAP is applied for the first time will be considered by the Minister of Finance on a case by-case basis

Question 12

GRAP’s are developed either:

Answer 12

• By adapting IPSAS’s (maintaining numbering + original text, unless significant SA public sector issue warrants departure); or
• By developing a GRAP to deal with a specific public sector issue (no IPSAS for it)

Question 13

The reporting framework comprises of what?

Answer 13

• Standards of GRAP
• Guidelines + Directives +Interpretation sissued by ASB
• Standards of other standard setters (IFRS and IAS)

Question 14

Who are the users of AFS?

Answer 14

• Taxpayers and ratepayers
• Members of legislature
• Creditors
• Suppliers
• The media
• Employees

Question 15

Who are the primary users of the GRAP AFS?

Answer 15

Citizens of RSA receive services and provide resources to the government and public sector entities.

Question 16

State the objective of Financial statements of GRAP 1

Answer 16

• Prescribe basis for presentation of general purpose financial statements,
• To ensure comparability both with
  
  • entity’s fin. statements of previous periods and
  • with AFS of other entities

Question 17

State the purpose of the presentation of Financial Statements GRAP 1

Answer 17

• AFS are a structured representation of the financial position financial performance and cash flows of an entity
• Useful to users in making economic decisions
• Also show results of management’s stewardship of resources entrusted –level of resources needed –who provides?

Question 18

A set of AFS consists of

Answer 18

• Statement of financial position
• Statement of financial performance
• Statement of changes in net assets
• Cash flow statement
• Comparison of budget and actual amounts
• Notes (policy and explanatory)