GRAP 3 - Policies estimates & errors

CPD hours:  1

Imagine a city with well-planned infrastructure, effective public services, and a transparent governance system. Public entities must have accurate and reliable financial records to keep everything running smoothly. This is where GRAP 3 comes into play.

GRAP 3, or Generally Recognised Accounting Practice 3, is the framework that guides public sector entities on how to account for accounting policies, changes in accounting estimates, and errors in their financial statements. It ensures that these elements are consistently applied and transparently reported, providing a clear picture of an entity’s financial performance and position.

For example, a municipality can use GRAP 3 to ensure that any changes in accounting estimates, like the valuation of assets or liabilities, are properly accounted for and disclosed. Similarly, if an error is discovered in previous financial statements, GRAP 3 provides the guidelines for correcting these errors retrospectively. This ensures that the financial information presented is always accurate and up to date.

GRAP 3 enhances the credibility and reliability of financial reporting in the public sector by standardising how these accounting elements are handled. It supports sound decision-making, accountability, and the proper management of public funds. It's not just about following rules; it’s about maintaining trust and ensuring that financial records reflect the true financial position of the entity.

What you will learn

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

• Explain the difference between an accounting policy, accounting estimate and an error.

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.