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Financial Statements Getting It Right

Accounting Standards BoardRef: TO GRAP 1

Official source

Source domain: asb.co.za

Collected on 13 July 2026

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What this means

This document is an Accounting Standards Board (ASB) Secretariat information page/article titled “Financial statements… getting it right – Judgement day.” It explains that, because South African accounting standards are principle-based, preparers must apply professional judgement and therefore should disclose the key judgements, assumptions, and estimation uncertainties used in preparing financial statements. It provides guidance on what to disclose (judgements in applying accounting policies and in measuring assets and liabilities) and includes an illustrative example referencing New Zealand IPSAS-based financial statements for the year ended 30 June 2019. It also references GRAP 1 (Presentation of Financial Statements), paragraphs .132 to .142, and includes an ASB disclaimer that the content is for information purposes only and not reviewed/approved by the Board.

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accounting guidance articleOngoing

Financial statements… getting it right – Judgement day

Read guidance on applying professional judgement in financial statements and disclosing judgements, assumptions and estimation uncertainties, including an illustrative Government of New Zealand example and a reference to GRAP 1.

Who it is for: preparers of financial statements and entities applying accounting standards
How to act on it: Read the article at the stated source link.

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Part 1 – Judgement day

How to apply

Facts

Reference

TO GRAP 1

Key Takeaways

Title: “Financial statements… getting it right – Judgement day”
Core message: financial statement preparers apply judgement due to principle-based standards and differing transaction facts
Disclosure guidance: areas of judgement in applying accounting policies
Disclosure guidance: areas of judgement in measuring assets and liabilities, including difficult/subjective/complex estimate judgements
Entities should disclose assumptions/uncertainties that could materially adjust carrying amounts in the next financial year
Example referenced: Government of New Zealand IPSAS financial statements year ended 30 June 2019
Example figures: electricity generation assets valued at $17.2 billion (2018: $15.9 billion)
Example note reference: assumptions and sensitivity analysis set out in note 16
Example drivers: future revenue streams (wholesale electricity prices, generation volumes), operating expenses, and discount rate
Reference to GRAP 1: Presentation of Financial Statements (paragraphs .132 to .142)
Disclaimer: prepared by ASB Secretariat for information only; not reviewed/approved/acted on by the Board
Accounting Standards Board (ASB)
ASB Secretariat
Board (ASB)
Government of New Zealand
Accounting Forum (mentioned in navigation text)
Office of the Auditor-General (OAG) (mentioned in navigation text)