Guidance on the classification of receivables

There are two types of receivables in government – statutory and contractual. Statutory receivables arise from compulsory transactions that are governed by legislation, regulations, by-laws, ministerial orders, or municipal council decisions. Contractual receivables arise from voluntary transactions when parties enter into a contract that creates rights and obligations for the parties to the arrangement.  

Feedback from the Post-implementation review of GRAP 108 on Statutory Receivables highlighted challenges with the classification of receivables. This includes classifying receivables that arise from transactions governed by legislative requirements and initiated by a contract.

Existing guidance available to entities are:  

The Board will discuss the results of the review at its July 2025 meeting. The results and the actions agreed will be published in the Review Report later in the year.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.