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Accounting Standards BoardRef: https://www.asb.co.za/10300-2/

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) web-page style extract providing guidance on preparing cash flow statements as part of financial statements. It explains common non-cash items that preparers often fail to adjust for (e.g., accrued interest/dividends, proceeds on asset disposals, accrued investments in assets, and depreciation/impairment reconciliation). It also notes that the ASB completed a review of compliance with GRAP 2 on Cash Flow Statements and will issue a Research Paper in June 2021. The text includes a disclaimer that the content is prepared by the ASB Secretariat for information purposes only and not reviewed or approved by the Board.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

financial reporting guidanceOngoing

Part 4 – Cash is king

The ASB provides guidance on preparing cash flow statements, including identifying and adjusting non-cash items, applying materiality considerations and maintaining systems to track adjustments during the year.

Who it is for: entities and preparers of financial statements
How to act on it: Read the guidance on the ASB webpage.

Show the line this came from

Part 4 – Cash is king

How to apply

Facts

Places

City of Tshwane, Gauteng

Reference

https://www.asb.co.za/10300-2/

Key Takeaways

Subject: Cash flow statement preparation guidance (Part 4 – Cash is king)
Focus: Accrual accounting and cash inflows/outflows in financial statements
Common non-cash items not adjusted: accrued interest/dividends received/paid; proceeds on disposal of assets; investments in assets (amounts not yet paid); depreciation and impairment losses in reconciliation
Requirement: detailed knowledge of underlying transactions/events to adjust non-cash items
Management obligation: implement systems/processes to track non-cash adjusting items during the year
Materiality: entities often use one materiality threshold across financial statements and notes; different thresholds/qualitative criteria may apply to components/line items
ASB review: compliance with GRAP 2 on Cash Flow Statements
Planned output: ASB Research Paper issued in June 2021
Disclaimer: prepared by ASB Secretariat for information only; not reviewed/approved by the Board
Accounting Standards Board (ASB)
ASB Secretariat
Board of the Accounting Standards Board
Pretoria (40 Church Square, Pretoria 0002)