Generally Recognized Accounting Practices - Explained
What are Generally Recognized Accounting Practices?
Written by J. Mance Gordon
Updated at April 18th, 2024
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What are Generally Recognized Accounting Practice (GRAP)?
The Generally Recognized Accounting Practice (GRAP) is an accounting standard employed in South Africa. It is defined as an array of essential ideas that serves as a guide to processes related to accounting. It is similar to GAAP in the US. Conversely, unlike the General Accepted Accounting Principles (GAAP), they basically concern the public sector of the economy. In the United Kingdom, the United States and other countries, they possess public sector accounting benchmark that is consistent with the International Public Sector Accounting Standards (IPSAS).
How are Generally Recognized Accounting Practice (GRAP) Used?
The Generally Recognized Accounting Practice (GRAP) is an accounting standard employed in South Africa. It is defined as an array of essential ideas that serves as a guide to processes related to accounting. It is similar to GAAP in the US. Conversely, unlike the General Accepted Accounting Principles (GAAP), they basically concern the public sector of the economy. In the United Kingdom, the United States and other countries, they possess public sector accounting benchmark that is consistent with the International Public Sector Accounting Standards (IPSAS).
GAAP concerns itself with the guidelines and standard rules for accounting exhibited in the private sector, while GRAP is public-sector focused. Nonetheless, their function is similar. The underlying goals is always the reliable, accurate, and consistent recording of their financial activities. The GRAP accounting standards (Generally Recognized Accounting Practices) are standards postulated by the Accounting Standard Board (ASB). It gives the standard as a result of section 89 of the Public Finance Management Act (PFMA) These standards are applicable to municipalities, provincial legislatures, constitutional institutions and parliaments. They also apply to other government parastatals and departments.