GRAP 19 - Provisions

CPD hours:  1

Imagine a public sector entity managing its obligations and risks—not just for today, but also for uncertain events in the future. To present a full and honest financial picture, it must account not only for current liabilities, but also for potential ones. This is where GRAP 19 comes into play.

GRAP 19 provides guidance on how public entities should recognise and disclose provisions, contingent liabilities, and contingent assets. It ensures that future obligations—such as legal claims, environmental rehabilitation, or guarantees—are reflected appropriately in the financial statements, even when the timing or amount is uncertain.

For instance, a municipality involved in a pending lawsuit must assess whether it is likely to pay damages and, if so, recognise a provision. Where an obligation is possible but not probable, it must still be disclosed as a contingent liability. This careful treatment of uncertainty gives stakeholders greater confidence in the financial statements.

By applying GRAP 19, public entities promote transparency, ensure accountability, and provide decision-makers and the public with essential insights into the risks and obligations that could affect future resources and service delivery.

What you will learn

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

• Identify a basic provision.
• Discuss the accounting of a provision.
• Explain the minimum disclosure requirements for a provision.

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.