GRAP 104R (2) - Financial instruments: Presentation and disclosure

CPD hours:  1

Once financial instruments are recognised and measured, the next step is clearly communicating this information. This is where GRAP 104 (Revised) (Part 2) comes into play.

This part of the standard guides the presentation and disclosure of financial instruments in financial statements. It ensures that entities not only record financial instruments correctly, but also present them in a way that highlights risks, obligations, and opportunities.

For example, disclosures about credit risk, interest rate risk, or liquidity risk help users of financial statements understand how financial instruments could affect the entity’s financial health. Entities strengthen public accountability and build stakeholder trust by presenting this information transparently.

In short, GRAP 104 (Revised) (Part 2) ensures that financial instruments are not just numbers on a page—they are explained in context, so that decision-makers and the public can see the bigger picture of how resources and risks are managed.