Assessing the readiness for the implementation of Generally Recognised Accounting Practice (GRAP) in the Department of Transport and Public Works in the Western Cape

[摘要] ENGLISH ABSTRACT:IMPLEMENTATION OF GENERALLY RECOGNISED ACCOUNTING PRACTICE (GRAP) IN THE DEPARTMENT OF TRANSPORT AND PUBLIC WORKS IN THE WESTERN CAPE.The research project was undertaken to explore one of the major obstacles in South Africa's public sector, namely shifting the basis of accounting from modified cash accounting to accrual accounting. Contrary to cash accounting, which recognises expenditure only when cash is paid and income is received, accrual accounting recognises expenditure when the goods and services are received and income is recognised when services are rendered. Given the condition of financial reporting within departments with no accrual accounting compliant systems, no processes and policies in place to comply with accruals and lack of relevant capacity and skills, the purpose of the study was to determine the capability of the department to implement accrual accounting (mainly Generally Recognised Accounting Practice (GRAP)) in the public sector context. What needed to be determined was the readiness of the department for the implementation and the challenges and conditions that hampered the implementation of accrual accounting.The literature review explores the existing information for correlation with the implementation of GRAP and recommendations are made to departments within the public sector to ensure an approach and conversion plan that would be relevant and practical in the current environment and address all challenges and concerns identified within a reasonable time frame. The importance of the research for the public sector resides in the recognition of the need for better understanding of the implementation of accrual accounting, so that significant risks and challenges of the accrual accounting implementation may be determined within departments in the public sector.

[发布机构] Stellenbosch University