GRAP 11 - Construction contracts

CPD hours:  1

Imagine a thriving and well-managed city where public services—such as healthcare, education, and infrastructure—are delivered efficiently to meet the needs of the community. Behind this smooth operation lies a solid framework of financial accounting, which ensures that public funds are spent responsibly and accounted for transparently. One of the key standards supporting this framework is GRAP 11.

GRAP 11, which stands for Generally Recognised Accounting Practice 11, outlines the principles for accounting for construction contracts in the public sector. It ensures that public entities managing construction projects—such as roads, bridges, or government buildings—recognise revenue and costs accurately throughout the life of each contract.

For example, when a local municipality undertakes the construction of a new community centre, GRAP 11 provides guidance on how to account for the revenue earned and the costs incurred as the project progresses. This approach allows the financial impact to be broken down into manageable periods, offering a clearer view of the project's financial health at every stage.

By providing consistent rules for recognising revenue and expenses over time, GRAP 11 helps ensure that financial results and performance are faithfully represented. This transparency builds trust with the public, demonstrating that taxpayer money is being used efficiently and in accordance with legal and contractual obligations.

In essence, GRAP 11 is more than an accounting standard. It is a tool for fostering accountability, improving financial decision-making, and ensuring that resources allocated to public infrastructure projects are used effectively. By standardising how construction contracts are reported, GRAP 11 supports better planning, resource management, and the delivery of public services that enhance the quality of life in our communities.

Through GRAP 11, public sector entities contribute to a robust and reliable financial reporting system—one that offers a true and fair view of their financial position and reinforces public confidence in the integrity of their financial practices.

What you will learn

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

• Identify which contracts fall within the scope of GRAP 11.
• Assess what type of construction contract you have.
• Calculate the amount of contract revenue and costs that must be recognised.
• Determine when to recognise contract revenue and costs in the statement of financial performance.
• Present and disclose construction contract transactions and balances in the 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.