GRAP 104 – Financial Instruments (Public Sector Application)

The programme

Programme overview

GRAP 104 – Financial Instruments provides guidance on the recognition, classification, measurement, presentation, and disclosure of financial instruments within public sector entities.

Public sector institutions increasingly engage in complex financial arrangements such as loans, receivables, payables, guarantees, investments, borrowings, and derivatives, making correct application of GRAP 104 critical for compliance, transparency, and audit assurance.

This course is designed to translate technical accounting requirements into practical, real-world public sector applications, supported by examples relevant to government departments, municipalities, public entities, and state-owned institutions.

Who should attend

Who is this programme for?

• Finance Managers and Finance Officers
• Management and Financial Accountants
• Chief Financial Officers (CFOs) and Deputy CFOs
• Internal and External Auditors
• Treasury and Budget Officers
• Financial Reporting Specialists
• Supply Chain and Contract Management Officers (Financial Contracts Focus)
• Risk Management and Compliance Officers
• Public Sector Consultants and Advisors

Learning outcomes

What you will learn

• Understand the scope and structure of GRAP 104
• Identify and classify financial assets and financial liabilities
• Apply correct initial recognition and measurement principles
• Distinguish between amortised cost and fair value measurement
• Account for loans, receivables, payables, investments, and borrowings
• Apply the Expected Credit Loss (ECL) impairment model to financial assets, including the 12-month vs. lifetime approach and the simplified approach for receivables
• Understand derecognition rules for financial instruments
• Apply presentation and disclosure requirements in Annual Financial Statements
• Prepare for audit scrutiny and compliance assessments

Explore the programme

Detailed programme outline

3-Day Essentials — Training Outline

• Purpose, scope, and public sector relevance of GRAP 104, including its alignment with the principles of IFRS 9
• Financial instruments explained: assets vs. liabilities, contractual rights and obligations
• Classification: loans/receivables, investments, payables, borrowings, guarantees and commitments
• When to recognise a financial instrument, and transaction vs. settlement date
• Initial measurement principles and transaction costs treatment

Practical Exercise: identify and classify common public sector financial instruments.

• Amortised cost method and the effective interest rate (EIR)
• Fair value measurement where applicable
• Concessionary loans: market vs. non-market interest rates, day-one gain or loss
• The Expected Credit Loss (ECL) model: a 2-step approach based on whether credit risk has increased significantly — 12-month ECL vs. lifetime ECL
• The simplified approach for receivables and lease receivables, where the significant-increase-in-credit-risk assessment is not required
• Derecognition of financial assets and liabilities, modifications and restructurings

Practical Exercise: impairment (ECL) calculation for receivables and loans.

• Statement of Financial Position presentation, current vs. non-current classification
• Risk disclosures (credit, liquidity, market), fair value disclosures, maturity analysis
• Common audit findings and documentation requirements
• Implementation challenges and alignment with treasury/SCM processes

Case Study: end-to-end accounting treatment of a financial instrument, with group presentations.

5-Day Comprehensive — Training Outline

• Purpose and objectives of GRAP 104
• Relationship with other GRAP Standards, and alignment with the principles of IFRS 9
• Scope and exclusions
• Public sector relevance and compliance expectations
• Financial instruments explained
• Financial assets vs. financial liabilities
• Equity instruments (where applicable)
• Contractual rights and obligations
• Loans and receivables
• Investments and deposits
• Trade and other receivables
• Trade and other payables
• Borrowings and overdrafts
• Guarantees and commitments
• When to recognise a financial instrument
• Transaction date vs. settlement date
• Initial measurement principles
• Transaction costs treatment
• Amortised cost method
• Effective interest rate (EIR) explained
• Fair value measurement (where applicable)
• Re-measurement at reporting date
• Market vs. non-market interest rates
• Treatment of concessional loans
• Impact on surplus/deficit
• Day-one gain or loss
• Objective evidence of impairment
• The Expected Credit Loss (ECL) model: a 2-step approach — 12-month ECL where credit risk has not increased significantly, lifetime ECL where it has
• The simplified approach for receivables and lease receivables
• Individually assessed vs. collectively assessed assets
• Write-offs vs. provisions
• Derecognition of financial assets
• Derecognition of financial liabilities
• Modifications and restructurings

Practical Exercise: impairment calculation for receivables and loans.

• Statement of Financial Position presentation
• Current vs. non-current classification
• Netting and offsetting rules
• Risk disclosures (credit, liquidity, market risk)
• Accounting policy disclosures
• Fair value disclosures
• Maturity analysis
• Common audit findings and pitfalls
• Documentation and evidence required
• Internal controls over financial instruments
• Common public sector challenges
• Practical implementation tips
• Alignment with treasury and SCM processes
• End-to-end accounting treatment of a financial instrument
• Group presentations and feedback

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.