What Grap 23?

What Grap 23?

GRAP 23 is applicable to all entities preparing their financial statements on the accrual basis of accounting and includes revenue arising from non-exchange transactions.

What is grap standard?

Standards of Generally Recognised Accounting Practice (GRAP) are accounting standards issued by the Accounting Standards Board (ASB) in terms of section 89 of the Public Finance Management Act (PFMA).

What are exchange transactions?

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

What is the difference between exchange and non-exchange transaction?

An exchange or exchange-like transaction is one in which each party receives and sacrifices something of approximate equal value. A non-exchange transaction is one in which one party receives something of value without directly giving value in exchange.

What is revenue from exchange transaction?

Revenue from exchange transactions is derived from: (a) Sale of goods or provision of services to third parties; (b) Sale of goods or provision of services to other government agencies; and (c) The use by others of entity assets yielding interest, royalties and dividends.

What grap means?

a prank or trick played on a person (especially one intended to make the victim appear foolish)

What is difference between exchange and transaction?

The key difference between transaction and exchange is that a transaction is a contract or agreement between two parties where a good or service is exchanged in return for a monetary value whereas an exchange is a swap of a good or a service between two parties.

Are government grants exchange transactions?

Government grants are generally treated as exchange transactions due to the common practice of governments purchasing goods or services for a particular population or the general public (although, private funders can provide exchange transactions as well).

What is GASB 72?

Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, provides guidance for determining and applying fair value measurements for financial reporting for governments. It’s effective for years beginning after June 15, 2015.