GRAP 38 - Disclosure of interests in other entities

CPD hours:  1

When a public sector entity enters into agreements with other parties to manage resources jointly, it needs to give stakeholders a clear picture of its rights, obligations, and share of resources. GRAP 37 provides the framework for accounting for joint arrangements in South Africa’s public sector.

This standard helps entities distinguish between joint operations, where parties share rights to assets and obligations for liabilities, and joint ventures, where parties share rights to the net assets of a separate entity. It ensures that these arrangements are recorded and reported consistently and transparently, so users of the financial statements can understand the entity’s involvement and its impact on financial position and performance.

By standardising how joint arrangements are accounted for, GRAP 37 supports informed decision-making, enhances transparency, and strengthens accountability. It is not just about recording shared activities; it is about providing a clear view of how the entity manages its collaborative commitments and resources responsibly for the benefit of the community.