Resumo

SCOTT, Deon; WINGARD, Christa  e  VAN BILJON, Marilene. Challenges with the financial reporting of biological assets by public entities in South Africa. S. Afr. j. econ. manag. sci. [online]. 2016, vol.19, n.1, pp.139-149. ISSN 2222-3436.  http://dx.doi.org/10.17159/2222-3436/2016/v19n1a9.

Fair value accounting of biological assets in the public sector was introduced with the adoption of the public-sector-specific accounting standard: Generally Recognised Accounting Practice (GRAP) 101. The public sector currently reports on various bases of accounting. Public entities and municipalities report in terms of accrual accounting, and government departments report on the modified cash basis. The lack of a uniform basis of accounting impedes the comparability of financial information. The implementation of GRAP 101 in the public sector is important in facilitating comparability of financial information regarding biological assets. This paper is based on a content analysis of the annual reports of 10 relevant public entities in South Africa and specifically details the challenges that public entities encounter with the application of GRAP 101. These challenges, and how they were addressed by a public entity that adopted and applied GRAP 101, namely the Accelerated and Shared Growth Initiative South Africa - Eastern Cape (AsgiSA-EC), are documented in this research.

Palavras-chave : fair value; biological assets; public entity [sector]; GRAP 101; accounting challenges; modified cash basis; accrual basis.

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