Assets & GRAP
Provisions and Contingencies
Recognised provisions and disclosed contingent liabilities under GRAP 19.
Drawing the provision-contingency line under GRAP 19
GRAP 19 distinguishes provisions, which are recognised liabilities, from contingent liabilities, which are only disclosed, and getting that distinction wrong either overstates or omits obligations. Tracking recognised provisions alongside disclosed contingencies keeps both the balance sheet and the notes faithful to the entity's true exposure. AuditPro Core maintains each item with its recognition basis so the GRAP 19 treatment is consistent and supportable.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Total Provisions
R 396 m
recognised
Contingent Liabilities
R 214 m
disclosed only
Landfill Rehabilitation
R 182 m
largest provision
New Litigation Exposure
R 48 m
▲ this year
Provisions by Type (R m)
Provision Movement Schedule
| Provision | Opening (R m) | Raised (R m) | Closing (R m) |
|---|---|---|---|
| Landfill rehabilitation | 168 | 14 | 182 |
| Staff leave & bonus | 88 | 8 | 96 |
| Litigation | 41 | 33 | 74 |
| Long-service awards | 40 | 4 | 44 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Provision recognition criteria
A provision is recognised when a present obligation exists, an outflow is probable, and the amount can be reliably estimated. All three conditions must hold; failing any one moves the item to disclosure or omission.
Contingent liabilities
A contingent liability is a possible obligation, or a present one that is not probable or measurable. It is disclosed in the notes but not recognised on the balance sheet.
Measurement uncertainty
Provisions rest on estimates such as legal claims or rehabilitation costs. The estimate must be the best available and revisited each period as circumstances change.
Movement and reversal
Provisions are not static; they are used, reversed or remeasured. Tracking the movement shows whether estimates are realistic or routinely over- or under-stated.
How AuditPro Core Bridges the Gap
- Recognition test: each item is assessed against the GRAP 19 criteria to decide provision versus contingency.
- Estimate traceability: provision amounts link to their supporting calculation or legal opinion.
- Movement tracking: use, reversal and remeasurement of each provision are recorded.
- Audit-ready disclosure: provisions and contingencies export to support the GRAP 19 notes.
Key Takeaways
- A provision needs a present obligation, probable outflow and reliable estimate.
- Contingent liabilities are disclosed, not recognised.
- Provision estimates must be revisited each period.
- Tracking movement reveals whether estimates are realistic.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.