GRAP 26 - Impairment of cash generating assets

CPD hours:  1

Imagine a public sector entity preparing its annual financial statements. Beyond simply listing assets and liabilities, it needs to give stakeholders a clear picture of the recoverable value of its resources. This is where GRAP 26 comes into play.

GRAP 26 provides the framework for recognising and measuring the impairment of cash-generating assets in South Africa’s public sector. It ensures that when the carrying amount of an asset exceeds its recoverable service amount, the loss is identified and reported in a consistent and transparent way, allowing users of the financial statements to understand the true economic value of the entity’s assets.

For example, a municipality may own buildings, infrastructure, or equipment used to generate revenue. GRAP 26 guides the municipality in assessing whether these assets are impaired, measuring any loss, and reflecting the reduction in value in the financial statements. This ensures decision-makers, oversight bodies, and the public have an accurate view of the entity’s financial position.

By standardising how asset impairments are recognised and disclosed, GRAP 26 supports better financial management, enhances accountability, and enables informed decision-making. It is not just about reporting asset losses; it is about providing a clear view of the entity’s capacity to use resources effectively and manage assets responsibly for the benefit of the community.

What you will learn

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

• Discuss an impairment and its indicators.
• Explain the assets to which GRAP 26 apply.
• Explain how to determine the recoverable amount.
• Discuss the recognition and measurement of an impairment loss.
• Explain the disclosure requirements for an impairment loss.

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.