Interpret basic Financial Statements
ID: 117156
NQF Level: Level 4
Credits: 4
PURPOSE OF THE UNIT STANDARD
Learners who achieve this unit standard are able to interpret an income and expenditure statement and use information in the statement to make a financial decision.
The qualifying learner is capable of:
- Analysing the basic elements of an income and expenditure statement.
- Analysing the basic elements of a balance sheet.
- Compiling a personal assets and liabilities statement.
- Using the evidence in financial statements to make a financial decision.
LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING
There is open access to this unit standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at NQF Level 3.
UNIT STANDARD RANGE
The typical scope of this unit standard is
Different types of financial statement including business, personal and organisation.
An enterprise could be a school, body corporate, club, church, small business, etc.
Specific Outcomes and Assessment Criteria:
SPECIFIC OUTCOME 1
Analyse the basic elements of an income and expenditure statement.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
The purposes of an income and expenditure statement are explained and an indication is given of how often these statements are required for two case studies.
ASSESSMENT CRITERION 2
Sources of income and expenditure are identified for three different kinds of financial statements.
ASSESSMENT CRITERION RANGE
Kinds of financial statements include but are not limited to business (close corporates, listed companies, partnerships, public entities, SMMEs, and sole ownerships), personal, organisations (club, church). (Any three).
ASSESSMENT CRITERION 3
Sources of income and expenditure are explained with reference to an income and expenditure statement.
ASSESSMENT CRITERION 4
Three income and expenditure statements are examined and evaluated in terms of financial viability of the enterprise.
SPECIFIC OUTCOME 2
Analyse the basic elements of a balance sheet.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
The purpose of a balance sheet is explained and an indication is given of how often a balance sheet is necessary for two case studies.
ASSESSMENT CRITERION 2
A balance sheet is analysed and evaluated in terms of equity or financial net worth.
ASSESSMENT CRITERION 3
The concept of an asset is explained and the assets in a balance sheet are classified in terms of fixed and current assets.
ASSESSMENT CRITERION 4
The concept of a liability is explained and the liabilities in a balance sheet are classified in terms of long term and current liabilities.
ASSESSMENT CRITERION 5
Balance sheets for an entity are compared and evaluated in terms of performance over two years and a decision is made based on evidence in the balance sheet.
SPECIFIC OUTCOME 3
Compile a personal assets and liabilities statement.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
A personal assets and liabilities statement is compiled based on own financial situation over the past year.
ASSESSMENT CRITERION 2
The situations when an assets and liabilities statement are required are listed and an indication is given of the advantages of keeping such records.
SPECIFIC OUTCOME 4
Use the evidence in financial statements to make a financial decision.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
The financial strengths and weaknesses of an entity are analysed and suggestions are made of ways to improve income and reduce costs.
ASSESSMENT CRITERION 2
The concept of a cost to income ratio is explained and suggestions are made on how to improve the ratio.
ASSESSMENT CRITERION 3
The relationship between turnover, income, revenue, sales/earnings and profit is explained with examples.
ASSESSMENT CRITERION 4
The concept of cash flow is explained in terms of liquidity.
UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS
This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA.
UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE
N/A
UNIT STANDARD DEVELOPMENTAL OUTCOME
N/A
UNIT STANDARD LINKAGES
N/A
Critical Cross-field Outcomes (CCFO):
UNIT STANDARD CCFO IDENTIFYING
The learner is able to identify, solve problems and make decisions based on the information in basic financial statements.
UNIT STANDARD CCFO ORGANISING
The learner is able to organise and manage him/herself effectively compiling a personal assets and liabilities statement.
UNIT STANDARD CCFO COMMUNICATING
The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentation when evaluating the strengths and weaknesses of an entity.
QUALIFICATIONS UTILISING THIS UNIT STANDARD:
| ID | QUALIFICATION TITLE | PRE-2009 NQF LEVEL | NQF LEVEL | STATUS | END DATE | QUALITY ASSURING BODY | |
| Core | 58376 | Further Education and Training Certificate: Bookkeeping | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | FASSET |
| Core | 57901 | Further Education and Training Certificate: Credit Management | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | FASSET |
| Core | 59298 | Further Education and Training Certificate: Freight Forwarding and Customs Compliance | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | TETA |
| Core | 65989 | Further Education and Training Certificate: Human Settlements Development | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | CETA |
| Core | 49155 | Further Education and Training Certificate: Shipping | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | TETA |
| Core | 48883 | Further Education and Training Certificate: Small Business Advising (Information Support) | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | SERVICES |
| Core | 65669 | Further Education and Training Certificate: Thoroughbred Horse Racing | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | CATHSSETA |
| Core | 48888 | National Diploma: Hiring Operations Management | Level 5 | NQF Level 05 | Reregistered | 2015-06-30 | SERVICES |
| Fundamental | 49649 | Further Education and Training Certificate: Long-term Insurance | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | INSETA |
| Fundamental | 49529 | Further Education and Training Certificate: Long-Term Risk Assessment | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | INSETA |
| Fundamental | 49356 | Further Education and Training Certificate: Medical Claims Assessing | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | INSETA |
| Fundamental | 66609 | Further Education and Training Certificate: Retail Insurance | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Fundamental | 66610 | Further Education and Training Certificate: Short Term Insurance | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Fundamental | 57613 | Further Education and Training Certificate: Short-Term Risk Management | Level 4 | NQF Level 04 | Passed the End Date – Status was “Reregistered” |
2012-06-30 | INSETA |
| Fundamental | 66613 | Further Education and Training Certificate: Wealth Management | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 67465 | National Certificate: Business Administration Services | Level 3 | NQF Level 03 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 72051 | National Certificate: Electrical Engineering | Level 3 | NQF Level 03 | Passed the End Date – Status was “Registered” |
2013-11-07 | As per Learning Programmes recorded against this Qual |
| Elective | 49089 | National Certificate: Financial Services | Level 3 | NQF Level 03 | Reregistered | 2015-06-30 | INSETA |
| Elective | 61591 | National Certificate: Information Technology: End User Computing | Level 3 | NQF Level 03 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 50479 | Further Education and Training Certificate: Advertising | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | MICTS |
| Elective | 61595 | Further Education and Training Certificate: Business Administration Services | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 72052 | Further Education and Training Certificate: Electrical Engineering | Level 4 | NQF Level 04 | Passed the End Date – Status was “Reregistered” |
2013-11-07 | As per Learning Programmes recorded against this Qual |
| Elective | 67461 | Further Education and Training Certificate: Event Support | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 66489 | Further Education and Training Certificate: Foundry Operations | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | MERSETA |
| Elective | 57712 | Further Education and Training Certificate: Generic Management | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 48915 | Further Education and Training Certificate: Manufacturing and Assembly Operations Supervision | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | MERSETA |
| Elective | 66249 | Further Education and Training Certificate: New Venture Creation | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | SERVICES |
| Elective | 58779 | Further Education and Training Certificate: Production Technology | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | MERSETA |
| Elective | 58800 | Further Education and Training Certificate: Project Support Services | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | SERVICES |
| Elective | 67697 | Further Education and Training Certificate: Sport Administration | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | As per Learning Programmes recorded against this Qual |
| Elective | 58337 | Further Education and Training Certificate: Trade Union Practice | Level 4 | NQF Level 04 | Reregistered | 2015-06-30 | ETDP SETA |
| Elective | 36153 | National Certificate: Polymer Composite Fabrication | Level 4 | Level TBA: Pre-2009 was L4 | Reregistered | 2015-06-30 | MERSETA |
| Elective | 49397 | National Certificate: Wholesale and Retail Operations Supervision | Level 4 | Level TBA: Pre-2009 was L4 | Reregistered | 2015-06-30 | W&RSETA |
| Elective | 57611 | National Certificate: 2D Animation | Level 5 | Level TBA: Pre-2009 was L5 | Reregistered | 2015-06-30 | MICTS |
| Elective | 58394 | National Certificate: Film and Television Production | Level 5 | Level TBA: Pre-2009 was L5 | Reregistered | 2015-06-30 | MICTS |
| Elective | 58978 | National Certificate: Journalism | Level 5 | Level TBA: Pre-2009 was L5 | Reregistered | 2015-06-30 | MICTS |
| Elective | 49710 | National Diploma: Development Practice | Level 5 | NQF Level 05 | Reregistered | 2015-06-30 | ETDP SETA |