GRAP 31 - Intangibles

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 value and potential of its intangible resources. This is where GRAP 31 comes into play.

GRAP 31 provides the framework for recognising, measuring, and disclosing intangible assets in South Africa’s public sector. It ensures that assets such as software, licenses, patents, and other non-physical resources are accounted for in a consistent and transparent way, allowing users of the financial statements to understand their contribution to the entity’s financial position and service delivery.

For example, a municipality may develop software systems, acquire licenses, or invest in intellectual property to improve services. GRAP 31 guides how these intangible assets are recognised, measured at cost or fair value, and how amortisation and impairment are applied. This enables decision-makers, oversight bodies, and the public to assess the entity’s management of its intangible resources.

By standardising the recognition and measurement of intangible assets, GRAP 31 supports better financial management, enhances accountability, and enables informed decision-making. It is not just about tracking assets; it is about providing a clear view of how these resources are managed to deliver services effectively and responsibly for the benefit of the community.