Altimax
GRAP 109 - Accounting for principals and agents
GRAP 109 - Accounting for principals and agents
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CPD hours: 1
Imagine a government department collecting fees on behalf of another agency. In this case, one entity acts as the principal, while the other is the agent. To avoid confusion in financial reporting, clear guidance is needed. This is the role of GRAP 109.
GRAP 109 sets out how entities should account for transactions where one acts as principal and the other as agent. It ensures that only the entity with control over the resources records them, avoiding duplication or misrepresentation in financial statements.
For example, if a municipality collects service fees on behalf of a water board, GRAP 109 helps determine whether the municipality should recognise the revenue or merely act as a custodian.
What you will learn
By the end of this course, you will be able to:
- Identify and explain principals, agents and third parties.
- Discuss the account treatment for principals and agents.
- Explain the relevant disclosure requirements.
Important information
Please take note of the following important details regarding your course access and certification:
- Certificates will be issued on the date of successful completion of the assessment and will reflect that date.
- Course access is valid for 12 months, after which the course will close.
- No updates will be made to the course during the 12-month access period. If updates become available, they will be released in a new course available for purchase on our website.
- For the Altimax terms and conditions, please refer to our website.
