Assets & GRAP
Lease Commitments (GRAP 13)
Operating and finance lease commitments disclosed under GRAP 13.
Classifying and disclosing leases correctly
GRAP 13 governs how leases are classified, measured and disclosed, and misclassifying a finance lease as operating, or omitting commitments, understates liabilities and is a recurring audit issue. Tracking operating and finance lease commitments keeps both the disclosure and the future cash obligation visible. AuditPro Core maintains the lease portfolio with its classification basis so GRAP 13 disclosures are complete and defensible.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Total Commitments
R 248 m
all leases
Finance Leases
R 116 m
on balance sheet
Operating Leases
R 132 m
off balance sheet
Classification Queries
4
▲ under review
Lease Commitments by Maturity (R m)
Lease Portfolio Detail
| Lease Type | Classification | Commitment (R m) |
|---|---|---|
| Fleet vehicles | Finance | 88 |
| Office buildings | Operating | 96 |
| Photocopiers | Operating | 36 |
| Plant & machinery | Finance | 28 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Finance versus operating leases
A finance lease transfers substantially all the risks and rewards of ownership and is recognised on the balance sheet; an operating lease is not. The classification determines whether an asset and liability appear at all.
Commitment disclosure
GRAP 13 requires future minimum lease payments to be disclosed, split by maturity band. Omitting or mis-banding these commitments understates the institution's future obligations.
Substance over form
Classification follows economic substance, not the contract's label. An arrangement called a rental may in substance be a finance lease, and the assessment must look past the title.
Completeness of the portfolio
Leases are often decentralised across departments, so the risk is omission. A complete lease register is the foundation of a reliable disclosure.
How AuditPro Core Bridges the Gap
- Classification record: each lease carries its finance-or-operating assessment and rationale.
- Maturity banding: commitments are split into the disclosure bands GRAP 13 requires.
- Completeness checks: decentralised leases are consolidated to reduce omission risk.
- Audit-ready export: the lease schedule exports to support the GRAP 13 commitment note.
Key Takeaways
- Finance leases go on the balance sheet; operating leases do not.
- GRAP 13 requires commitments disclosed by maturity band.
- Classification follows substance, not the contract label.
- Decentralised leases create omission risk a central register reduces.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.