GRAP 109 on Accounting by Principals and Agents sets out the disclosure requirements for an agent and principal respectively. These disclosures are provided from the date that the parties enter into an agreement, irrespective of whether any transactions were undertaken during the reporting period.

A new Frequently Asked Question (FAQ) explains when it may be appropriate for an agent to recognise assets that it holds for the principal when these are indistinguishable from its own assets. The FAQ also explains when it will be appropriate for an agent to recognise receivables and payables based on the rights and obligations established in the binding arrangement, and what disclosures need to be presented when resources are held on behalf of a principal.

The FAQ is available here [Frequently asked questions – ASB].

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.