Assets & GRAP
GRAP 104 Financial Instruments
Classification, measurement and expected credit loss treatment under GRAP 104.
Why GRAP 104 treatment is reviewed
GRAP 104 governs the classification, measurement and impairment of financial instruments such as receivables, investments and borrowings, and its expected-credit-loss model directly shapes the debtors and impairment figures. Misclassifying instruments or applying the wrong measurement basis distorts the financial position and is a technical area the AGSA examines closely. AuditPro Core reviews instrument classification, measurement and expected-credit-loss treatment against GRAP 104 so financial instruments are accounted for correctly.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Instruments classified
94%
ECL provision
R312 m
▲ R28 m
Fair value Level 3
R47 m
Unclassified items
11
Financial instruments by category
Measurement basis detail
| Instrument | Measurement basis | Value (R m) |
|---|---|---|
| Consumer debtors | Amortised cost | 980 |
| Listed investments | Fair value (P&L) | 290 |
| Long-term loans | Amortised cost | 612 |
| Unlisted equity | Fair value Level 3 | 47 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Classification drives treatment
GRAP 104 classifies instruments by their nature and how they are measured, whether at amortised cost or fair value. The classification chosen dictates subsequent measurement and impairment, so getting it wrong cascades through the statements.
Expected credit loss model
Receivables and other financial assets are impaired on an expected-credit-loss basis, recognising losses before default occurs. This forward-looking model demands realistic, evidence-based loss assumptions.
Measurement consistency
Instruments must be measured on the correct basis consistently across periods. Inconsistent or incorrect measurement of borrowings and investments misstates both finance costs and the balance sheet.
How AuditPro Core Bridges the Gap
- Classification testing: financial instruments are tested against GRAP 104 classification criteria.
- ECL modelling: expected-credit-loss assumptions are applied and challenged for realism.
- Measurement check: amortised-cost and fair-value bases are verified for correctness and consistency.
- Audit traceability: classification and measurement decisions trace to source instrument data.
Key Takeaways
- Classification under GRAP 104 dictates measurement and impairment.
- The expected-credit-loss model recognises losses before default.
- Measurement basis must be correct and consistent across periods.
- Errors in instrument treatment cascade through the whole statements.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.