GRAP 35 - Consolidated financial statements

CPD hours:  1

Imagine a public sector entity preparing its annual financial statements. Beyond simply listing revenue and expenses, it needs to provide stakeholders with a clear picture of its financial instruments, including how they are recognised, measured, and disclosed. This is where GRAP 35 comes into play.

GRAP 35 provides the framework for accounting for financial instruments in South Africa’s public sector. It ensures that financial assets, financial liabilities, and related transactions are reported in a consistent and transparent way, allowing users of the financial statements to understand the entity’s financial position and performance.

For example, a municipality may hold investments, loans receivable, or owe amounts to suppliers. GRAP 35 guides how these instruments are measured—whether at fair value or amortised cost—and how gains or losses are recognised. This helps decision-makers, oversight bodies, and the public assess the entity’s exposure to financial risk, its liquidity, and its capacity to meet obligations.

By standardising the recognition, measurement, and disclosure of financial instruments, GRAP 35 enhances accountability, supports informed decision-making, and provides a clear window into the entity’s management of its financial resources. It is not just about tracking assets and liabilities; it is about showing how the entity manages its finances responsibly for the benefit of the community.

What you will learn

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

• Explain which entities must prepare consolidated financial statements.
• Explain the meaning of control.
• Explain the steps followed to compile consolidated financial statements.

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.