SAQA

All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.

SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Evaluate companies based on their financial statements

SAQA US ID	UNIT STANDARD TITLE
12883	Evaluate companies based on their financial statements
ORIGINATOR
SGB HET Accountancy and Financial Management
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA
FIELD			SUBFIELD
Field 03 - Business, Commerce and Management Studies			Finance, Economics and Accounting
ABET BAND	UNIT STANDARD TYPE	PRE-2009 NQF LEVEL	NQF LEVEL	CREDITS
Undefined	Regular	Level 6	Level TBA: Pre-2009 was L6	15
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Reregistered"		2018-07-01	2023-06-30	SAQA 06120/18
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2024-06-30		2027-06-30

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.

This unit standard does not replace any other unit standard and is not replaced by any other unit standard.

PURPOSE OF THE UNIT STANDARD

This unit standard is intended for people working in, or who wish to work in, the Financial Markets sector.

Persons credited with this Unit Standard can identify the four basic financial statements (balance sheet, income statement, cash flow statement and statement of owner's equity) and are able to evaluate the liquidity, efficiency, profitability and risk of the company using standard financial ratio analysis.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

It is assumed that the learner is competent in Communication and Mathematical Literacy at NQF level.

UNIT STANDARD RANGE

"The four basic Financial statements" include:

The balance sheet

The income statements

Statement of capital structure

Cash generation statement

"Financial Ratios" include:

Liquidity ratios such as the current ratio, the quick ratio and interest cover

Leverage ratios such as the debt to capital employed and total liabilities to total assets

Profitability ratios such as sales growth, gross profit margin, gross profit to sales, operating profit to sales, net profit margin, selling and admin expenses to sales, return on assets and return on capital employed

Efficiency ratios such as number of debtors days, creditors days, inventory days, inventory turnover to cost of sales, fixed asset turnover, cash conversion days

Shareholder information such as earnings per share, dividends per share, price earnings ratio, earnings yield, dividend yield, dividend cover

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Construct the four basic financial statements

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. A conceptual framework for financial statements is reviewed and an explanation is given of the different components of the framework and the purpose and relative value of each.

ASSESSMENT CRITERION 2

2. Information for reporting purposes (financial accounting) is differentiated from information for decision purposes (management accounting).

ASSESSMENT CRITERION 3

3. Financial items and categories are allocated to the correct statement for a set of accounts.

ASSESSMENT CRITERION 4

4. The relationship between items on the different statements is made apparent with examples.

ASSESSMENT CRITERION 5

5. The principles of GAAP (Generally Accepted Accounting Practice) relating to the financial statements are applied for a set of accounts.

SPECIFIC OUTCOME 2

Identify factors affecting the sustainability of economic entities

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Revenue stream generation activities of a firm are identified using financial statements.

ASSESSMENT CRITERION 2

2. The characteristics of financial success are identified with examples.

ASSESSMENT CRITERION 3

3. The role of various financial ratios in determining the firm's financial viability is discussed in relation to two companies.

SPECIFIC OUTCOME 3

Analyse the firm to establish its financial viability

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The financial viability of the firm is evaluated using the four basic financial statements and ratios.

ASSESSMENT CRITERION 2

2. The financial state of affairs of the firm is compared meaningfully to industry benchmarks or norms.

ASSESSMENT CRITERION 3

3. The financial consequences of various managerial decisions are predicted for two companies using financial statement analysis, and alternative recommendations are made when necessary to prevent financial failure.

SPECIFIC OUTCOME 4

Report on the financial viability of the firm

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The report is constructed using the firm's best practice requirement or template.

ASSESSMENT CRITERION 2

2. The analysis findings are provided in writing using graphical information and an oral presentation is made of the main points.

ASSESSMENT CRITERION 3

3. Recommendations are made regarding investment in the firm.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

Accreditation and moderation:

Accreditation for this Unit Standards shall be from the FASSET Education and Training Quality Assuror through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

Assessors must be registered as an Assessor with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA

Moderators must be registered as assessors with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA

Training providers must be accredited by the Fasset ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA

Moderation should include both internal and external moderation where applicable

The Fasset ETQA will co-ordinate all moderation activities in accordance with its policies and procedures

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

A demonstrated understanding of:

The terminology relating to the Financial Markets and instruments.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO COLLECTING

Collect, analyse, organise and critically evaluate information. For example, a great deal of information about an organisation's profitability, viability, and management effectiveness can be gathered through critically analysing information available in their financial statements, and conclusions based on such analysis can be of value to investors.

UNIT STANDARD CCFO COMMUNICATING

Communicate effectively using visual, mathematical and / or language skills in the modes of oral and / or written persuasion. For example, mathematical skills are essential in the analysis of figures.

UNIT STANDARD CCFO SCIENCE

Use science and technology effectively and critically, showing responsibility towards the environment and health of others. For example, calculations can be performed with greater ease and rapidity using computer technology.

UNIT STANDARD CCFO DEMONSTRATING

Demonstrate an understanding of the world as a set of interrelated systems by recognizing that problem-solving contexts do not exist in isolation. For example, the various ratios and calculations performed during financial analysis can be related meaningfully to one another to draw relevant business conclusions about the organisation.

REREGISTRATION HISTORY

As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015.

UNIT STANDARD NOTES

Terminology:

Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms" published by Who owns Whom/PSG Online in 2001. ISBN 1-919850-04-X.

Values:

The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds proscribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Core	50481	National Certificate: Financial Markets and Instruments	Level 6	Level TBA: Pre-2009 was L6	Passed the End Date - Status was "Reregistered"	2023-06-30	BANKSETA
Fundamental	23653	National Diploma: Financial Markets	Level 6	NQF Level 06	Passed the End Date - Status was "Reregistered"	2023-06-30	FASSET

PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD:

This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.

1.	AAR Trading and Projects (Pty) Ltd
2.	Absa Learning & Development
3.	BLU AGRIFUXION SOLUTIONS (PTY)LTD
4.	DC Academy
5.	Fachs Business Consulting and Training
6.	FINANCEIUM SCHOOL OF BUSINESS (PTY)LTD
7.	Maharishi Invincibility Institute NPC
8.	MAT 007 (PTY) LTD
9.	NEW GENERATION COMMUNITY DEVELOPMENT
10.	Novia One Group (Pty) Ltd
11.	NUBIAN SKILLS CONSULTING (PTY)LTD
12.	Octomate Education Pty Ltd
13.	RIAPHATHUTSHEDZA
14.	The Graduate Institute of Financial Sciences (Pty) Ltd
15.	The Institute of Literacy Advancement
16.	THE SHERQ CENTRE OF EXCELLENCE PTY LTD