GRAP 21 - Impairment of non-cash generating assets

CPD hours:  1

Imagine a public hospital operating with outdated medical equipment or a school with deteriorating buildings. While these assets might still exist physically, their ability to deliver services to the community may have declined. This is where GRAP 21 becomes essential.

GRAP 21, or Generally Recognised Accounting Practice 21, provides guidance on how public sector entities in South Africa assess and account for the impairment of non-cash-generating assets—assets that do not directly generate commercial returns but are vital for delivering public services.

For example, a local clinic building may no longer meet safety standards, or a public library may be underused due to digital transformation. GRAP 21 ensures that these assets are reviewed for impairment, and where necessary, their carrying amount is adjusted to reflect their recoverable service potential.

This standard helps entities provide an honest and realistic picture of the condition and value of their service-delivery assets. It supports transparency, responsible asset management, and more informed decisions about repairs, replacements, or repurposing.

By applying GRAP 21, public sector organisations demonstrate accountability in managing public resources—ensuring that service potential is maintained and that financial statements truly reflect the state of the assets entrusted to them.

What you will learn

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

• Explain which assets fall within the scope of GRAP 21.
• Explain what an impairment is and what indicated a possible impairment.
• Explain recoverable service amount.
• Discuss the recognition and measurement of an impairment loss.
• Discuss how an impairment must be disclosed.

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.