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ASB: ED 217 – Amendments to Chapter 7 in the Conceptual Framework
- 18 February 2026
- Accounting
- South African Accounting Academy
Summary:
The Accounting Standards Board (ASB) has issued Exposure Draft 217 to seek comment on the amendments to Chapter 7 on “Measurement of assets and liabilities in financial statements” in the Conceptual Framework.
Article:
A Standard of GRAP on Measurement will be developed once the amendments to the Conceptual Framework are complete.
The Conceptual Framework lays the foundational principles that the Board uses to develop the measurement requirements in the individual Standards of GRAP. These measurement requirements will be developed for each individual Standard’s specific purpose and may not use the same concepts as explained in the Conceptual Framework.
Comments are due on 8 May 2026.
Here are some highlights of the proposed amendments:
Initial measurement
The current Conceptual Framework does not contain guidance on initial measurement. The proposed amendments include that assets are initially measured at their transaction price plus transaction costs and liabilities are initially measured at their transaction price minus transaction costs, unless:
- there is no reliable transaction price data available; or
- there is another more representationally faithful measurement basis. Where there is no transaction price data available or if the transaction price does not faithfully represent an asset or liability, deemed cost is used.
Subsequent measurement
The current Conceptual Framework contains guidance on measurement bases while the proposed amendments introduce two levels of measurement in addition to measurement bases. They are: measurement models and measurement techniques.
Access the 5-page Executive Summary at https://www.asb.co.za/wp-content/uploads/2023/08/Executive-summary-ED-217-Amendments-to-Chapter-7-of-the-Conceptual-Framework.pdf
Click here to download the 42-page Exposure Draft document:
Relevance to Auditors, Independent Reviewers & Accountants:
- You need to assess fair presentation and compliance with the Standards of GRAP.
- Non-compliance with GRAP standards may lead to a modified audit opinion.
- You should be aware of the latest publications issued by the relevant board, e.g. ASB.
- The exposure draft seeks comment on the amendments to Chapter 7 on “Measurement of assets and liabilities in financial statements” in the Conceptual Framework.
Relevance to Your clients:
- Relevant entities should be aware of the latest publications issued by the standards board, e.g. ASB.
- This exposure draft seeks comment on the amendments to Chapter 7 on “Measurement of assets and liabilities in financial statements” in the Conceptual Framework.