GRAP 2 - Cash flow statements

CPD hours:  1

Imagine a public sector entity preparing its annual financial statements. Beyond simply listing income and expenses, it needs to give stakeholders a clear picture of how cash flows in and out of the organisation. This is where GRAP 2 comes into play.

GRAP 2 provides the framework for preparing a cash flow statement in South Africa’s public sector. It ensures that cash movements are classified and presented in a consistent, transparent way, allowing users of the financial statements to understand how an entity generates and uses cash resources.

For example, a municipality can use GRAP 2 to show cash received from service charges, grants, and borrowings, and how that cash was used for paying employees, maintaining infrastructure, and repaying loans. This breakdown helps decision-makers, oversight bodies, and the public assess the entity’s financial health and sustainability.

By standardising how cash flows are presented, GRAP 2 supports better financial planning, improves accountability, and enables more informed decision-making. It is not just about tracking money; it is about providing a clear window into the entity’s ability to fund services, meet obligations, and manage resources responsibly for the benefit of the community.

What you will learn

By the end of this course, you will be able to:

• Identify and explain how to classify cash flows.
• Explain how to disclose cash flows in the cash flow statement.

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.