GRAP 104 – Financial Instruments (Public Sector Application)

GRAP 104 – Financial Instruments (Public Sector Application)

Master the Revised GRAP 104 Expected Credit Loss Model for Public Sector Compliance

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Platform:
Online
In-class
Date Venue Duration
14 - 16 October 2026 Pretoria, Gauteng 3 Days
23 - 27 November 2026 Sandton, Gauteng 5 Days

Course Introduction

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.

Course Duration Options

This course is available in two formats, so you can choose the depth that fits your time and needs:

3-Day Essentials Core Foundations

Introduction and classification, measurement/impairment/derecognition, and presentation/disclosure/audit readiness, condensed into a focused three days covering the full ECL model and its practical application.

Ideal for: Professionals needing focused core mastery of the ECL model and essential audit readiness.

Both formats are delivered face-to-face, virtually, or in-house, and share the same practical, hands-on instructional approach.

Course Objectives

By the end of this training, participants will be able to:
  • 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

Who should attend?

This course is tailored 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
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Training Methodology

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.

Training Outline

3-Day Essentials β€” Training Outline

DAY 1 β€” Introduction and Classification
Overview, Definitions, and Classification
  • 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
Initial Recognition
  • 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.


DAY 2 β€” Measurement, Impairment, and Derecognition
Subsequent Measurement
  • 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
Impairment (ECL) and Derecognition
  • The Expected Credit Loss (ECL) model: a 2-step approach based on whether credit risk has increased significantly β€” 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.


DAY 3 β€” Presentation, Disclosure, and Audit Readiness
Presentation and Disclosure
  • Statement of Financial Position presentation, current vs. non-current classification
  • Risk disclosures (credit, liquidity, market), fair value disclosures, maturity analysis
Audit Expectations and Implementation
  • 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 β€” Training Outline

Day 1: Introduction & Classification of Financial Instruments
Session 1: Overview of GRAP 104
  • 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
Session 2: Key Definitions and Concepts
  • Financial instruments explained
  • Financial assets vs. financial liabilities
  • Equity instruments (where applicable)
  • Contractual rights and obligations

Day 2: Classification and Initial Recognition
Session 3: Classification of Financial Instruments
  • Loans and receivables
  • Investments and deposits
  • Trade and other receivables
  • Trade and other payables
  • Borrowings and overdrafts
  • Guarantees and commitments
Session 4: Initial Recognition
  • When to recognise a financial instrument
  • Transaction date vs. settlement date
  • Initial measurement principles
  • Transaction costs treatment

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


Day 3: Measurement, Loans, and Impairment
Session 5: Subsequent Measurement
  • Amortised cost method
  • Effective interest rate (EIR) explained
  • Fair value measurement (where applicable)
  • Re-measurement at reporting date
Session 6: Loans and Concessionary Loans
  • Market vs. non-market interest rates
  • Treatment of concessional loans
  • Impact on surplus/deficit
  • Day-one gain or loss
Session 7: Impairment of Financial Assets
  • Objective evidence of impairment
  • The Expected Credit Loss (ECL) model: a 2-step approach β€” 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

Day 4: Derecognition, Presentation, and Disclosure
Session 8: Derecognition
  • Derecognition of financial assets
  • Derecognition of financial liabilities
  • Modifications and restructurings

Practical Exercise: impairment calculation for receivables and loans.

Session 9: Presentation in Financial Statements
  • Statement of Financial Position presentation
  • Current vs. non-current classification
  • Netting and offsetting rules
Session 10: Disclosure Requirements
  • Risk disclosures (credit, liquidity, market risk)
  • Accounting policy disclosures
  • Fair value disclosures
  • Maturity analysis

Day 5: Audit Considerations, Implementation, and Application
Session 11: GRAP 104 and Audit Expectations
  • Common audit findings and pitfalls
  • Documentation and evidence required
  • Internal controls over financial instruments
Session 12: Implementation Challenges & Best Practices
  • Common public sector challenges
  • Practical implementation tips
  • Alignment with treasury and SCM processes
Session 13: Case Study & Group Discussion
  • End-to-end accounting treatment of a financial instrument
  • Group presentations and feedback

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FAQs – GRAP 104 – Financial Instruments (Public Sector Application)

Master GRAP 104 Financial Instruments in the public sector. Learn classification, subsequent measurement, ECL impairment calculations, derecognition, and audit readiness for compliant financial reporting.
What topics are covered in the GRAP 104 Financial Instruments in the Public Sector course?
The course covers GRAP 104 principles, classification and initial recognition of financial assets and liabilities, subsequent measurement, expected credit loss (ECL) impairment models, derecognition, and presentation, disclosure, and audit readiness.
Who should attend the GRAP 104 Financial Instruments training course?
This course is designed for financial accountants, chief financial officers (CFOs), internal auditors, financial managers, risk officers, and public sector accounting professionals responsible for financial instrument compliance and reporting.
How does this course help ensure GRAP compliance and prevent audit queries?
Delegates learn how to apply measurement principles accurately, execute robust ECL impairment calculations, navigate complex derecognition rules, and compile audit-ready financial statements that meet stringent public sector oversight standards.
How long is the GRAP 104 Financial Instruments training course?
The programme is structured as an intensive practical masterclass featuring hands-on financial instrument classification exercises, ECL calculation workshops, and real-world case studies tailored to the public sector.
What practical tools and skills will delegates gain from this masterclass?
Delegates gain practical tools to model expected credit losses, evaluate concessionary loans, manage day-one gains or losses, map out amortised cost versus fair value treatments, and clear standard audit hurdles.
Can Prospen Africa deliver this course as customized in-house training?
Yes. Prospen Africa can tailor the masterclass around your public sector entity’s specific financial asset portfolios, reporting systems, internal control frameworks, and organizational structure.

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