LU 4/7
Learning Unit 4 Portfolio Guide
Portfolio Guide
20188 NC Real Estate Level 5
Financial Management
BrainTrust Business Training
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Learning Unit 4 Portfolio Guide
2
Contents
Introduction................................................................................... 4
1.
About this Portfolio Guide ............................................................... 4
1.1
Alignment ................................................................................................... 4
1.2
Assessment of your Portfolio ..................................................................... 5
1.3
Appeals Procedure ..................................................................................... 5
2.
Portfolio Evidence ........................................................................... 6
2.1
Portfolio of Evidence Requirements .......................................................... 6
2.2
Assessment Requirements ......................................................................... 6
3.
Assessment Strategy........................................................................ 7
Candidate Information Sheet ......................................................... 8
Portfolio of Evidence Checklist ..................................................... 10
Task 1: Cost Analysis .................................................................... 14
ACTIVITY 1: KNOWLEDGE ASSIGNMENT .......................................................... 14
ACTIVITY 2: PRACTICAL ASSIGNMENT ............................................................. 16
ACTIVITY 3: WORKPLACE EVIDENCE ................................................................ 17
Task 2: Forecasting and Budgets ................................................... 18
ACTIVITY 1: KNOWLEDGE ASSIGNMENT .......................................................... 18
ACTIVITY 2: PRACTICAL ASSIGNMENT ............................................................. 19
ACTIVITY 3: WORKPLACE EVIDENCE ................................................................ 21
Task 3: Financial Controls ............................................................. 22
ACTIVITY 1: KNOWLEDGE ASSIGNMENT .......................................................... 22
ACTIVITY 2: PRACTICAL ASSIGNMENT ............................................................. 24
ACTIVITY 3: WORKPLACE EVIDENCE ................................................................ 27
Task 4: Data and Financial Management ...................................... 28
ACTIVITY 1: KNOWLEDGE ASSIGNMENT .......................................................... 28
ACTIVITY 2: PRACTICAL ASSIGNMENT ............................................................. 29
ACTIVITY 3: WORKPLACE EVIDENCE ................................................................ 31
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Learning Unit 4 Portfolio Guide
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Task 5: Reflective Journal ............................................................. 32
Annexure A – Answer Sheet Templates ........................................ 38
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Learning Unit 4 Portfolio Guide
Introduction
1.
About this Portfolio Guide
1.1
Alignment
The purpose of this guide is to provide the Learner, Evidence Facilitator and Assessor
with guidelines on the preparation and presentation of the Portfolio of Evidence for
assessment purposes in Learning Unit 4.
Tip:
This Portfolio Guide will enable the learner to plan, prepare, compile and present the
evidence required of him/her to be declared competent against the unit standards
contained in Learning Unit 4 of the NC Real Estate, Level 5.
This Portfolio Guide must be read in conjunction with the Services SETA NC Real Estate programme
material – Learning Unit 4, which is based on the following unit standards:
Learning Unit 4: Financial Management
ELO
4. Prepare and
maintain
financial reports
and records
within a real
estate
environment
US Type
NLRD
Core
12997
Core
7878
Core
13000
Core
12999
Core
15071
US Title
Prepare financial reports and
returns
Prepare and maintain financial
records and statements
Contribute to the planning and
allocation of resources within an
accounting framework
Contribute to the management of
costs and the enhancement of
value
Collate, interpret and utilise
financial information in a real
estate business
Level
Credits
5
8
5
12
5
10
5
10
5
5
45
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Learning Unit 4 Portfolio Guide
1.2
5
Assessment of your Portfolio
Within 1 month of submitting your portfolio:
 The assessor will verify the evidence presented, and may contact you to ask for further evidence,
to clarify anything and/or to conduct an oral assessment
 The assessor will provide a written assessor report to the provider
 The assessment results will be moderated
 If assessed as competent, you will be issued with the credits applicable to this learning unit against
the unit standards of the programme.
 If assessed as not yet competent, you will receive detailed guidance on what you need to be
before you can be assessed as competent.
1.3
Appeals Procedure
In order to conduct the NQF system in an equitable & transparent manner, it is important that there
is a mechanism by which a learner can appeal against the assessment conducted by the person who
has been given the task of assessing him / her.
A learner may appeal against an assessment decision if he / she feels that the assessment was not
i.
Valid
ii.
Fair
iii.
Reliable
iv.
Practicable
The assessor is required to advise the candidate of the required appeals process to follow:
1.
Attempt to resolve dispute with assessor
2.
Submit formal request for dispute resolution to organization’s SDF / Moderator
3.
SDF will meet with the learner to discuss and agree on a possible resolution (appoint
different assessor to re-assess, appoint moderator to moderate the assessment, submit
additional information for assessment)
4.
If, after a second assessment and moderation, the learner is still dissatisfied, he / she may
fill in the Appeal Form and submit to the SDF / Moderator. (This form is explained to every
learner prior to assessment commencing, the learner has free access to an Appeal Form
as a copy of the form is kept on the site where the learner is assessed.
5.
The SDF/ Moderator will appoint an Appeals Committee within the organization to review
the appeal, during which both learner and assessor will have the opportunity of stating
their case to the Appeals Committee.
6.
The Appeals Committee will make a decision of upholding or overthrowing the appeal,
and communicate the decision to all relevant parties.
Tip:
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Learning Unit 4 Portfolio Guide
Should the candidate still not be satisfied with the outcome, he may approach the
organization for further information on possible alternative actions to resolve the
matter, or lodging an appeal with the relevant ETQA
The decision of the ETQA will be final and binding on all parties.
2.
Portfolio Evidence
2.1
Portfolio of Evidence Requirements
“Good” evidence is, as per the SAQA requirements:
 Valid (related to what is being assessed)
 Current (as recent as possible)
 Sufficient (enough evidence to prove the competence without “overkill”)
 Authentic (conducted by the candidate him/herself, in a real-life work environment, or
acceptably simulated environment).
Tip:
Get a lever arch file and place 9 file divisions into it. We suggest that your portfolio is
organized into 4 sections.
Refer to the Portfolio Checklist that is provided on Page 11 of this Portfolio
Workbook – it will assist you in making sure that all evidence is included in a
structured and auditable manner.
Tab 1 in your Portfolio of Evidence will be a blank slot – the assessor will file your
assessment guide here once he has completed your portfolio assessment.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Assessment Guide
Personal Details
Task 1
Task 2
Task 3
Task 4
Task 5
Additional Evidence
Assessment Guide
Tip:
Refer to the last section of this Portfolio Guide for administrative documents that
must be included in your Portfolio of Evidence. Refer to the Portfolio Checklists to
assist you in structuring your portfolios in an “assessment friendly” manner.
2.2
Assessment Requirements
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Learning Unit 4 Portfolio Guide
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Self Assessment
Review the assessment strategy provided below – it will provide you with sufficient
evidence against this module of the qualification, and prepare you for the FSA (Final
Summative Assessment)
3.
Assessment Strategy
Each unit standard per learning unit is assessed in a Task - each task contains a variety of assessment
activities.
MODULE
LEARNING
UNIT
The matrix on the below provides a detailed overview of the activities contained in each Task in the
assessment strategy for this Learning Unit:
SAQA ID
NUMBER
12999
4
1
13000
4
2
7878
4
2
4
3
12997
15071
4
4
TITLE
Contribute to the management of
costs and the enhancement of
value
Contribute to the planning and
allocation of resources within an
accounting framework
Prepare and Maintain Financial
Records and Statements
Prepare financial reports and
returns
Collate, interpret and utilise
financial information in a real
estate business
KNOW
ASS
PRAC
ASS
WPE
REF
JRN
1
2,3
1
1,3
3,4
1,2,4
3
4
1,2,3,4
,5,6,7,
20
4,5,8,9
,11,12,
13,14,
17,20
3,4,8,1
0,11,1
2,14,1
5,16,1
9
6,10,1
5,16,1
8,19
4
1,2,3
3
4
1,4,5
1,2,3,4
,5
1,2,3,4
5
Self Assessment
From the matrix below, it is evident that you will be required to complete 4 areas of
evidence:


Knowledge Assignment
Practical Assignment
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Learning Unit 4 Portfolio Guide


Natural Occurring Workplace Evidence
Reflective Journal
You are now ready to start with your Portfolio of Evidence – GOOD LUCK!!
Candidate Information Sheet
Name
Surname
ID
Equity
(Black African, Black Coloured, Black Asian,
White, Other – specify)
Language
Physical Address
Postal Address
Area Code:
Telephone Number
Cell Number
Email Address
Employer
Employer Contact Details
Date of Portfolio Submission
Assessor Name
Assessor ID Number
Date of Assessment
Programme Name
Learning Unit
Contact Number
Assessor Signature
20188 NC Real Estate Level 5 (229 credits)
Learning Unit 4 – Financial Management
BrainTrust Business Training
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Learning Unit 4 Portfolio Guide
Declaration of Learner Preparation:
I hereby declare that I have been prepared for all assessment activities related to the Learning
Unit 4 Financial Management. I am aware of the requirements and time frames of this
assessment, and undertake to complete any remedial work required for assessment of this
Learning Unit, where required.
Declaration of Authenticity:
I hereby declare that the evidence presented in this Portfolio is my own work, and that I have
participated in preparing the evidence in the case of group work activities. Where applicable, I
have recognized sources of information used in the preparation of this Portfolio of Evidence for
Learning Unit 4: Financial Management
Learner Name
Learner Signature
Learner ID Number
Date
Unit Standard
12999
Task
1
Activity
1. Theory Assignment
2. Practical
Assignment
3. Workplace Evidence
13000
2
1. Theory Assignment
2. Practical
Assignment
3.Workplace Evidence
7878 & 12997
3
1. Theory Assignment
Completed
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Learning Unit 4 Portfolio Guide
10
2. Practical
Assignment
3.Workplace evidence
15071
4
1. Theory Assignment
2. Practical
Assignment
3.Workplace Evidence
ELO 4
5
1. Reflective Journal
Assessor Name
Assessor Signature
Date
Portfolio of Evidence Checklist
No Activity
Portfolio Documents
A
Portfolio of Evidence Checklist
completed
Personal Information Form completed
Declaration of Authenticity completed
Copy of ID Included
B
C
D
Check –
Candidate
Check – Alignment
Assessor
TASK 1 – 12999 (evidence signed and dated)
1
2
Activity 1: Knowledge Assignment
1.1
Acronym definitions.
1.2 a
Business environment in relation to
GAAP /GRAP.
1.2 b
Protection of clients and suppliers by
principles.
1.3
The basic principles of GAAP.
1.4
Principle and term word to description
match – a-l
1.5
Financial accounting and cost analysis
1.6
Variable, Fixed and Marginal Cost
Activity 2: Practical Assignment
2.1
Cost Analysis – Town House Project
2.2
Principles in costing systems
2.3
Cost accounting techniques
2.4
Reduce cost and enhance value
SO 1
SO 1
CCFO
SO 1
SO 1
SO 1
SO 1
SO 2
SO 2
SO 2
SO 3
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Learning Unit 4 Portfolio Guide
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Activity 3 : Workplace Evidence
3.1 a
Compile a comparative analysis
3.1 b
Recommendations to rectify the areas of
non-compliance
3.2
Reduce Costs and enhance value
11
SO 1
SO 1
SO 3
TASK 2 –13000 (evidence signed and dated)
1
2
3
Activity 1: Knowledge Assignment
1.1 a
Cost, profit and production budget
1.1 b
Responsibility/cost centre definition
1.1 c
Monitor performance
1.1 d
Impact of no monitoring
1.2 a
Accounting principles
1.2. b
Macro and microeconomics
Activity 2: Practical Assignment
2.1
Economic Indicators
2.2
Forecasts
2.3
Produce draft budget
Activity 3: Workplace Evidence
3.1
Accounting techniques
No Activity
SO 3
SO 3
SO 3
CCFO
SO 4
SO 4
SO 4
SO 1
SO 2
SO 4
Portfolio Documents
Check –
Candidate
Check – Alignment
Assessor
TASK 3 –7878, 12997 (evidence signed and dated)
1
2
Activity 1: Knowledge Assignment
1.1 a
Accuracy and confidentiality in financial
record keeping
1.1 b
Ensuring that financial records are
updated with set deadlines
1.1 c
Backing up data on computerised system
1.1 d
basic format of Balance Sheet and
Income Statement
1.2
Select the term
1.3
Logical flow of data
1.4
Prepare and interpret financial
statements as monitoring tool
1.5
Name at least 2 GAAP principles
1.6
Discuss the following term :
Activity 2: Practical Assignment
2.1 a
Possible entries to balance sheet  information provided
 template completed
2.1 b
Source a balance sheet statement from
your company and complete an analysis
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SO 1
SO 2
SO 3
SO 4
SO 4
SO 5
SO 6
SO 7, 4
SO 20
SO ,3
SO 4, 19
Learning Unit 4 Portfolio Guide
2.2 a
2.2 b
2.2 c
2.2 d
2.2 e
Adjustments
2.2 f
2.2 g
Balance Sheet
Generate month-end reports
2.3 a
Cross check to identify irregularities and
discrepancies
Impact of petty cash transaction not
recorded
Filing and referencing systems
Reconciliation dates
Adapting systems to different context
2.3 c
2.3 d
2.3 e
No
SO 8, 11,
18
Financial Entries – case study
Record entries occurred during the
period 1 July to 31 July.
Supporting documentation
Cross-referencing system
Complete the Trial Balance
2.3 b
Activity
Portfolio Documents
SO 9
SO 9
SO
8,11,12,13
SO 8, 12,
18
SO 8, 16,18
SO 15,17
12997 – SO
1
SO 14
SO 14
SO 10
SO 12
SO 20
Check –
Candidate
Check – Alignment
Assessor
2.4
3
VAT Returns and Calculations
 Calculations completed
 Journal entries completed
 Vat 201 document sourced and
completed
Activity 3: Workplace Evidence
3.1 a
Investigation into current filing systems
3.1 b
Investigation into reporting structures
and requirements to outside agencies
SO 3
SO 10
SO 2
TASK 4 –15071 (evidence signed and dated)
1
2
12
Activity 1: Knowledge Assignment
1.1 a
Collecting Financial Data
1.1 b
Other forms and sources of data
1.2
Using Financial Data
1.3
Monitoring Risk
1.4
Financial Controls
Activity 2: Practical Assignment
2.1 a
Data Quality Management
SO 1
SO 1, 2
SO 1
SO 4
SO 5
SO 1
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Learning Unit 4 Portfolio Guide
SO 1
2.1 b
Comparative investigation - Data
Quality
2.2
Managing Risk
2.3
Brief to staff on financial controls
2.4
Investment Management
2.5
Trust Accounts
Activity 3: Workplace Evidence
3
3.1
Financial Controls
TASK 5 – DOCUMENT REVIEW
5.1
Reflective Journal
SO 4
SO 4
SO 3
SO 5
SO 5
ELO 4
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Learning Unit 4 Portfolio Guide
14
Task 1: Cost Analysis
EXIT LEVEL OUTCOME 4:
Prepare and maintain financial reports and
records within a real estate environment
12999
Contribute to the management of costs and the
enhancement of value Level 5 Credits 10
Learning Unit 4 Module 1
Purpose of Assessment Activity …
Determine whether the candidate demonstrates
and understanding of the business environment and
accounting framework in relation to GAAP and is
able to collect, analyse and disseminate information
about costs in order to make recommendations to
reduce costs and enhance value.
ACTIVITY 1: KNOWLEDGE ASSIGNMENT
1.1
1.2
Business and accounting environment - GAAP/GRAP
Define the following acronyms
 GAAP
 GAMAP
 FASB
6
a.
Discuss the business environment in relation GAAP /GRAP with reference to
the following:
 Four Key Assumptions
 Four Basic Principles
 Four Basic Constraints
10
b.
Discuss how these assumptions, principles and constraints protect the clients
and suppliers of a company.
5
1.3
List and define the basic principles of GAAP
10
1.4
Select the accounting principle or term from the list below that best matches
the descriptions listed as items a-l. Each principle or term can be used several
times.
24
Draft a table listing a – l, and provide the matching terms next to each letter.
1.
4.
7.
10.
13.
a.
b.
cost
matching
full disclosure
going concern
industry practices
2.
5.
8.
11.
14.
monetary unit
time period
materiality
conservatism
economic entity
3.
6.
9.
12.
relevant
reliable
consistency
comparability
Public utilities' balance sheets report plant assets before current assets.
Allows accountants to round financial statement amounts to the nearest
thousand dollars.
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Learning Unit 4 Portfolio Guide
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
15
Results in dozens of pages of notes to the financial statements.
Assumption that the company will continue in business long enough to carry
out its objectives and commitments
Allows accountants to report a proprietor’s business assets separately from the
proprietor’s personal assets.
When doubt exists between two alternatives, the accountant should select the
one with the lesser asset amount or the one resulting in less profit.
Allows an ongoing business to prepare quarterly financial statements
Requires accrual accounting and adjusting entries.
Defined as the cash or cash equivalent amount
Allows inexpensive equipment to be expensed immediately instead of being
depreciated.
Also referred to as periodicity.
Justifies stating assets at cost and the deferral of some costs to a future
accounting period.
1.5
Summarize in table form, the difference between financial accounting and cost
analysis
10
1.6
Discuss the following terms:
 Variable costs
 Fixed costs
 Marginal Costs
15
Total Weighting
Minimum Required
80
70
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Learning Unit 4 Portfolio Guide
16
ACTIVITY 2: PRACTICAL ASSIGNMENT
Tip:
Refer to Activity 2 – The Town House Complex - Part 1 in your Learner Guide p38 to
complete the following activities.
Using the list of cost analysis points identified during your group exercise
complete the following practical activities. (Enclose all documentation
sourced and prepared during this activity in your PoE)
2.1
Cost Analysis
Conduct and complete the full cost analysis on the Town House Complex and
clearly show and document the full process within the guidelines stated below
:
 Cost planning
 Cost control
 Cost management for decision making
50
2.2
Principles in costing systems
You are required to investigate and explain the principles and theory
underpinning accounting in relation to costing systems within the framework
of GAAP/GRAP. Discuss how you applied these principles to your cost analysis
conducted above.
25
2.3
Cost accounting techniques
Discuss the various cost analysis techniques that you used in the process of
collecting, analyzing and disseminating the cost information.
15
2.4
Reduce cost and enhance value
From the completed cost analysis compile a full report to the project manager
in which you make recommendations to reduce costs and enhance the value of
the project.
25
Total Weighting
Minimum Required
115
100
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Learning Unit 4 Portfolio Guide
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ACTIVITY 3: WORKPLACE EVIDENCE
Portfolio Activity:
This activity must be signed off by your Supervisor or Principal Agent – you must
arrange for a meeting with him so that you can present your evidence in a report
format - at which time he can review your work performance and knowledge against
the criteria listed on the enclosed checklist.
3.1
3.2
Accounting Principles/GAAP
You are required to conduct a full investigation into your company’s current
organisational policies and procedures with specific reference to:
 accounting practices
 administrative procedures
a.
From your investigation compile a comparative analysis report whether the
investigated systems and practices comply to
 GAAP Principles and
 Accounting Principles
30
b.
Make recommendations to rectify the areas of non-compliance identified
during your investigation.
10
Reduce Costs and enhance value
You are required to conduct an investigation into your company’s current
expenses and liabilities - both short and long term. From this investigation
compile a report in which you discuss the following : areas where costs can be reduced, and
 your recommendations on how this can be achieved
Total Weighting
Minimum Required
Candidate
30
70
60
Assessor
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Learning Unit 4 Portfolio Guide
Name:
Signature:
Date Submitted:
Feedback & Re-assessment Notes on Task 1
Name:
Signature:
Date Assessed:
Assessment Decision
on Task 1:
MET REQ
18
NOT MET
REQ
Activity 1:
Activity 2:
Activity 3:
Task 2: Forecasting and Budgets
EXIT LEVEL OUTCOME 4:
Prepare and maintain financial reports and
records within a real estate environment
13000
Contribute to the planning and allocation of
resources within an accounting framework Level 5
Credits 10
Learning Unit 4 Module 2
Purpose of Assessment Activity …
Determine whether the candidate demonstrates an
understanding of the business and accounting
environment and is able to prepare forecasts of
income and expenditure, together with the ability
to produce draft budgets proposals and monitor the
performance of responsible centres against budget.
ACTIVITY 1: KNOWLEDGE ASSIGNMENT
1.1
a.
Performance Monitoring
Define the following terms : Cost Budget
 Profit Budget
 Production and cost of goods manufactured budget
6
b.
Define the term – Responsibility/cost centre
4
c.
Discuss how you would use financial budgets to monitor the performance of
responsibility centres.
15
d.
What impact would it have on the financial status of the business if the
performance of responsibility centres are not monitored?
10
The Accounting Environment
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Learning Unit 4 Portfolio Guide
1.2
19
a.
Discuss the following accounting principles in relation to the financial
statement
 Economic Entity Assumption
 Monetary Unit Assumption
 Time Period Assumption
 Cost Principle
 Full Disclosure Principle
10
b.
Discuss the following terms : Microeconomics
 Macroeconomics
5
c.
Define and discuss the following economic key indicators: Economic growth rate
 Unemployment
 Productivity growth
 Interest rates
15
Total Weighting
Minimum Required
65
55
ACTIVITY 2: PRACTICAL ASSIGNMENT
Tip:
Refer to Activity 5 – The Town House Complex - Part 3 – Forecasting p 73 and
Activity 8 – The Town House Complex – Part 5 – Budget Line Items p 80 in your
Learner Guide for completing the following activities.
Using the list of economic indicators and data resources identified during
your group exercise complete the following practical activities. (Enclose all
documentation sourced and prepared during this activity in your PoE)
2.1
Forecasts
During your group exercise you were required to identify : Economic Indicators that would have an impact on your project
 The data sources where information on these indicators can be
located.
Conduct research into the current status/levels of these economic indicators
identified and compile a report to the financial manager on the following : the influence that these indicators will have on your project, and
 your recommendations on how the company can
a. capitalize on the positive influences and;
b. minimize or avoid the negative influences identified.
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Learning Unit 4 Portfolio Guide
20
Using the list of budget line items identified during your group exercise
complete the following practical activities. (Enclose all documentation
sourced and prepared during this activity in your PoE)
2.2
Your marketing team has put forward a proposal that the Town House Project
be marketed and sold as a plot-and-plan concept thereby ensuring viable
income for the funding of the project. Based on market research they have
suggested a selling price per unit of R1,5m. They estimate that the sales team
will sell the first 5 units within a period of 3 months.
50
Using all the data and information collected on the Town House Project to
date –prepare forecasts of income and expenditure for the first 3 months of
the project.
2.3
From the above forecasts, produce and present to the project manager, a clear
budgeting plan together with a draft budget for the first 3 months of the
project. Your evidence must clearly reflect the following :


50
budgets are broken down into periods in accordance with anticipated
seasonal trends.
Discussions with budget holders are conducted in a manner which
maintains goodwill and professionalism.
Your budget must include the following areas:
 Current expenditure
 resource budget
 capital budget
 sales budget
 marketing budget
 project budget
 cash flow budget
Total Weighting
Minimum Required
125
115
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Learning Unit 4 Portfolio Guide
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ACTIVITY 3: WORKPLACE EVIDENCE
Portfolio Activity:
This activity must be signed off by your Supervisor/ Principal Agent or Financial
Officer – you must arrange for a meeting with him so that you can present your
evidence in a report format at which time he can review your work performance and
knowledge against the criteria listed on the enclosed checklist.
3.1
Business and Accounting Environment
You are required to conduct an investigation into the various accounting
techniques which are currently being utilised in your company.
25
From your investigation, compile a report in which you discuss the following : the various techniques that are being used in the company, and;
 how these techniques are utilised in the process of planning and
allocating resources within the accounting framework of the company.
Total Weighting
Minimum Required
25
20
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Candidate
Name:
Signature:
Date Submitted:
Feedback & Re-assessment Notes on Task 2
Assessor
Name:
Signature:
Date Assessed:
MET REQ
Assessment Decision
on Task 2:
22
NOT MET
REQ
Activity 1:
Activity 2:
Activity 3:
Task 3: Financial Controls
EXIT LEVEL OUTCOME 4:
Prepare and maintain financial reports and
records within a real estate environment
7878
Prepare and Maintain Financial Records and
Statements Level 5 Credits 12
12997
Prepare financial reports and returns Level 5
Credits 8
Learning Unit 4 Module 2
Purpose of Assessment Activity …
Determine whether the candidate is able to prepare
and maintain financial records including the
recording of financial transactions together with
reconciliation and cross-referencing. In addition the
learner must also demonstrate ability to prepare
financial reports and returns including VAT returns
and submission.
ACTIVITY 1: KNOWLEDGE ASSIGNMENT
1.1
Financial Record Keeping
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Learning Unit 4 Portfolio Guide
1.2
23
a.
Discuss the importance of accuracy and confidentiality in financial record
keeping.
10
b.
Discuss the importance of ensuring that financial records are updated with set
deadlines
10
c.
Discuss why it is important to regularly back up data when using a
computerised bookkeeping system.
10
d.
Describe the basic format and content of the following financial statements:
 Balance Sheet
 The Income Statement
25
Select the term from the list below that best answers or matches the questions
or descriptions listed as items a-o. Some of the terms can be used more than
once.
1. gains
2. matching
3. time period
4. full disclosure
5. cost
6. going concern
7. conservatism
8. time period
9. materiality
10. expensed when
11. qualitative
12. period costs
they occur
characteristics
15
Record your answers on the answer sheet provided in Annexure A
1.3
Discuss the following term : - All accounting systems have a logical flow of data
from source documents and records to statements.”
15
1.4
Explain the importance of being able to prepare and interpret financial
statements as a tool to monitor the performance of a business.
15
1.5
Name at least 2 GAAP principles, and indicate how you would check for these
principles in your accounting systems
15
1.6
Discuss the following term : “The financial record keeping processes and
procedures for the Real Estate Industry will differ from the processes and
procedures used in the Retail Industry”
15
Total Weighting
Minimum Required
130
120
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ACTIVITY 2: PRACTICAL ASSIGNMENT
2.1
Format and content of financial statements
a.
Below is list of possible entries that could appear on a company balance sheet.
 Indicate what information each entry will provide you, and;
 transfer the entries onto the balance sheet template provided on the
next page and include in your PoE.
Make use of the templates provided in Annexure A for your answers
b.
2.2
Source a balance sheet statement from your company and complete an
analysis of the following :
 Are there any entries on the balance sheet that are specific to the Real
Estate industry only?
 Why would these types of entries not appear on the balance sheet of
e.g. a retail store?
20
15
Financial Entries
Please read the following scenario carefully and then complete the activities A
-G
(include all supporting documentation and generated reports in your PoE)
Simulation / Case Study
Your company has decided to open a new branch in the Western Cape.
 You are required to set-up and manage an accounting system for this
branch.
 Your accounting system could be either computerised or, in the case of
a manual system, create or source the necessary accounting templates
for documentation (this could be sourced from
www.office.microsoft.com)
 Your month-end cut off date is the 31st of the month and the reporting
date set by the directors is the 5th of the new month.
 As part of your reporting structure you are required to report the
following :
Directors – Branch income and expense
Accountant – All fixed asset expenses incurred
HR Manager - All salaries and casual wages paid
a.
Instructions
On your accounting system create and record the following entries occurred
during the period 1 July to 31 July.
1st
the directors invest R 50 000 cash to the bank account and take a loan
of R 100 000 from the bank
st
1
Current assets: inventory Estate Agent boards (for sale) – R8 000.
5th
Acquire fixed assets: equipment – R 35 000 Part paid in cash – R 24
000, remaining part will be paid after 30 days.
th
9
Acquire office supplies for cash – R 2 500
11th
Pay in cash for office insurance, period one year – R 6 700
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17th
18th
21st
22nd
b.
2.3
Pay casual wages to M. Fliet – R 120-00 – cleaning of garden.
Draw R 1 000 float for petty cash tin
Partly pay suppliers for equipment acquired – R 7 000.
Client – Mr Rouw pays part deposit of R 3 000-00 on rental property.
Balance of R 4 500 will be paid by the 1st of the next month.
24th
Sell advertising agent boards to DGR Estate Agents for R 8 000
th
25
Purchase Coffee, Sugar, Milk for office kitchen to value of R 105,46
through Petty Cash
th
25
Mr Rouw pays additional R 1 000 towards deposit
28th
Receive rental payments from 15 clients – total of Rentals = R 58 00000. Company management fee = 10%.
th
29
Pay salaries to branch staff : - 1 x Receptionist R 2 500 and 1 x Office
cleaner R 1 500
30th
Pay Telkom account for installation of lines R 856
What documentation would be used to support the above entries?
15
c.
Indicate which cross-referencing system you would implement to ensure that
you are able to : check documents and account balances and
 trace entries back to the source documents
15
d.
Complete the Trial Balance for the entries completed in activity A.
25
e.
After closing the trial balance you receive the invoice for advertising in the
local paper on the 24th . Record the necessary adjustments.
15
f.
Prepare the resulting Balance Sheet and Income statement for the month of
July.
25
g.
Generate the month-end reports as indicated in your scenario brief.
25
a.
Based on the previous scenario – if you had to conduct a cross check to identify
irregularities and discrepancies :
 what types of discrepancies and irregularities would you be looking out
for, and
 what process would you follow to identify the discrepancies
15
b.
What would the impact be on your month-end reports if a petty cash
transaction of R500 was not recorded?
10
c.
If the company does not have a standard filing and cross referencing system in
place for financial source documents, how would this impact on the financial
management function?
10
d.
In the above scenario your month-end closing date is indicated as the 31st of
the month and the reporting date is set as the 5th of the new month.
10
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

e.
2.4
26
As the person in charge of the financial function by which date would
you need to complete your reconciliation of all accounts and financial
documentation, and
what would the impact on the financial function be if the reconciliation
was not completed by the set date?
Given a different context, such as gaming, travel or retail, explain how you
would adapt your financial record-keeping processes and procedures that you
have developed for this branch to accommodate a different industry?
10
VAT Returns and Calculations
Please read the following scenario carefully and then complete the activities
outlined below.
(show all calculations and include all supporting documentation and generated
reports in your PoE)
50
Simulation / Case Study
Nteo’s Furnishers is registered for VAT under Category B (the invoice basis) on
a
two-month period. The business only deals with other VAT vendors. The
company vat registration number is 4010157833.
Instructions
 Use the given information to calculate the VAT (round off to the
nearest cent),
 post to and close off the applicable VAT accounts in the general ledger,
and;
 Source the VAT 201 document from (www.sars.gov.za) and complete
the return to be submitted before or on 25 March 2009 for the twomonth period ending 28 February 2009.
 The given figures include VAT where VAT is applicable.
Information
Transactions for February 2009:
 Credit sales according to invoices no 24 – 87 issued R37 821
 Cash sales according to cash register rolls R22 965
 Redundant computer sold for cash R 2 500
 Insurance claim paid out on stolen delivery truck R40 000
 New computer bought (for office use) on credit R12 000
 Trading stock bought and overheads/operating expenses paid per
cheque R20 000
 Credit notes issued to customers R 1 580
Total Weighting
Minimum Required
310
270
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ACTIVITY 3: WORKPLACE EVIDENCE
Portfolio Activity:
This activity must be signed off by your Supervisor/ Principal Agent or Financial
Officer – you must arrange for a meeting with him so that you can present your
evidence in a report format at which time he can review your work performance and
knowledge against the criteria listed on the enclosed checklist.
3.1
a.
b.
Filing systems
At your current workplace conduct an investigation into the following systems:
 current filing system utilised for source documents
 the cross referencing system in use
From you investigation - compile a report in which you outline the process and
related the organisational policies to a new employee who has just been
employed in your financial department.
25
Returns and reports to outside agencies
At your current workplace conduct an investigation into the preparation of
reports and returns for outside agencies.
Compile a report on the following :
 Which outside agencies is your company required to report to?
 Who takes responsibility for the preparation and submitting of these
reports?
 What are the reporting deadlines for each of these agencies?
 What format do these reports adhere to, are there any standard forms
or documentation prescribed by these outside agencies? If so what are
they?
 What information is contained in each of these reports?
25
Total Weighting
Minimum Required
50
40
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Candidate
Name:
Signature:
Date Submitted:
Feedback & Re-assessment Notes on Task 3
Assessor
Name:
Signature:
Date Assessed:
MET REQ
Assessment Decision
on Task 3:
28
NOT MET
REQ
Activity 1:
Activity 2:
Activity 3
Task 4: Data and Financial Management
EXIT LEVEL OUTCOME 4:
Prepare and maintain financial reports and
records within a real estate environment
13000
Collate, interpret and utilise financial
information in a real estate business Credits 5
Level 5
Learning Unit 4 Module 4
Purpose of Assessment Activity …
To determine whether the learner is able to
collate, interpret, evaluate and utilise financial
information in a real estate business.
ACTIVITY 1: KNOWLEDGE ASSIGNMENT
1.1
a.
b.
1.2
Collecting financial data
In which of the company documents will you find financial data that will enable
you to make long term decisions?
Other than the company financial data – what other forms and sources of data
would you consider when making a decision to expand the business?
Using financial data
What information can a business obtain by analysing the financial data?
10
10
10
1.3
Monitoring Risk
Discuss the following term “A company that does not monitor it’s risk is
doomed to fail.”
15
1.4
Financial Controls
15
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Learning Unit 4 Portfolio Guide
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Discuss at least 3 financial control methods that can be implemented to ensure
that risks are monitored and minimized.
Total Weighting
Minimum Required
60
50
ACTIVITY 2: PRACTICAL ASSIGNMENT
2.1
Data Quality Management
a.
Design a flow diagram in which you illustrate the following :
 the flow of financial data in your company from the source documents
and records to statements
 the auditing points that establish an audit trial
20
b.
Refer to the Data Quality Model in your Learner Guide – p265. Using this
model, conduct a comparative investigation into your company financial data
collection practices.
50
From your investigation compile a comparative report in which you rate the
following :
 Your company adherence to the Data Management System of :
 SOURCE
 COLLECTION
 COLLATION
 ANALYSIS
 REPORTING
 USAGE

Your company adherence to the Data Quality System of :
 VALIDITY
 RELIABILITY
 INTEGRITY
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 PRECISION
 TIMELINES

2.2
2.3
2.4
Your company practices with regards to providing an audit trial
Managing Risk
Based on your report, identify the risk areas in your processes and prepare a
detailed action plan in which you identify the financial controls that must be
implemented to manage the identified risks.
25
Financial Controls
Prepare a detailed briefing to all staff in which you outline how the above
financial controls will be implemented and monitored with related timelines.
25
Investment Management
(The following activity is based on a simulated case study. Ensure that you
include all supporting documentation in your PoE)
50
Your company has recently concluded the sale of Mr van der Bergs’s house to
the value of R 4,5 m. Mr van der Berg has indicated that he wants to re-invest
the money but is not sure what investment options are available, or how to
establish the best investment portfolio. He has indicated that he would be
interested in an investment period not exceeding 10 years.


2.5
You are required to conduct research into at least 3 investment
options that are available to your client and make recommendations in
the form of a report to Mr van der Berg.
Substantiate your recommendations with actual figures and
calculations including performance graphs and actual supporting data.
Trust Accounts
(The following activity is based on a simulated case study. Ensure that you
include all supporting documentation in your PoE)
Your clients Mrs James has purchased a house from your company to the value
of R 2,5m. She has decided that she would like to establish a trust fund and
have the house registered to the trust.
Compile a report to Mrs James in which you outline the following :

The process of establishing and registering a trust fund
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



31
The legal requirements of such a trust fund
The law that governs the management of said trust
The tax implications of the trust
Management of the trust by appointed trustees.
Total Weighting
Minimum Required
200
185
ACTIVITY 3: WORKPLACE EVIDENCE
Portfolio Activity:
This activity must be signed off by your Supervisor or Principal Agent – you must
arrange for a meeting with him so that you can present your evidence in a report
format at which time he can review your work performance and knowledge against
the criteria listed on the enclosed checklist.
3.1
Financial Controls
You are required to investigate, and record in table format , the financial
transactions and corresponding control measures that originate from the
following activities in your workplace.
 Managing a show house
 Managing conveyancing activities
 Managing a referral network
Analyse the existing control measures and make recommendations to
strengthen these measures where necessary. (the table format below serves
as an example of the layout of your table)
Total Weighting
Minimum Required
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25
25
20
Learning Unit 4 Portfolio Guide
Activity
Transactions
Financial Control in
place
32
Recommendations
Show House
Conveyancing
Referral Network
Candidate
Name:
Signature:
Date Submitted:
Feedback & Re-assessment Notes on Task 3
Assessor
Name:
Signature:
Date Assessed:
Assessment Decision
on Task 3:
MET REQ
Activity 1:
Activity 2:
Activity 3:
Task 5: Reflective Journal
Tip:
This Reflective Journal must be completed by you during your time in the Workplace,
before you attend Learning Unit 5.
You are required to note down on a weekly basis the activities that you engaged in,
the lessons learnt and challenges in relation to the unit standard purpose.
This activity supports the critical cross field outcomes of the qualification, and must
show your ability to do the following as stated in the exit level outcomes and related
assessment criteria:
ELO:
4. Analyse, interpret, implement and control real estate principles, systems and
policies.
RELATED ASSESSMENT CRITERIA
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NOT MET
REQ
Learning Unit 4 Portfolio Guide
1. Contribute to the management of costs and the enhancement of value
2. Contribute to the planning and allocation of resources within an accounting
framework
3. Prepare and Maintain Financial Records and Statements
4. Prepare financial reports and returns
5. Collate, interpret and utilise financial information in a real estate business
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ELO
CANDIDATE NAME
4. Prepare and
maintain financial
reports and records
within a real estate
environment
ASSESSOR NAME
JOURNAL PERIOD
FROM
TO
US ID AND TITLE
BROAD BASED DESCRIPTION OF THE UNIT STANDARD PURPOSE
12999 – Contribute to the
management of costs and the
enhancement of value.
Demonstrate and understanding of the business and accounting environment.
Make recommendations to reduce costs and enhance value.
Monitor the performance of responsibility centres against budget.
13000 – Contribute to the planning
and allocation of resources within
an accounting framework.
DATE
LEARNER REFLECTION
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Learning Unit 4 Portfolio Guide
US ID AND TITLE
7878 - Prepare and maintain
BROAD BASED DESCRIPTION OF THE UNIT STANDARD PURPOSE

financial records and statements
12997- Prepare financial reports
and returns.
35




DATE
The preparation and maintenance of financial records and systems including recording of financial transactions
in accordance with fundamental accounting concepts.
Managing an accounting system and the related backing-up of financial data on a regular basis in the event of a
computerised system.
Understanding of the format and contents financial statements and records as well as the importance of being
able to read these statements and make informed decisions based on information.
The reconciliation of transactions and implementing the correct method of cross-referencing and filing of source
documents.
Preparation and completion of month-end reports, figures and returns.
LEARNER REFLECTION
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Learning Unit 4 Portfolio Guide
US ID AND TITLE
BROAD BASED DESCRIPTION OF THE UNIT STANDARD PURPOSE
15071 – Collate, interpret and
utilise financial information in a
real estate business
Collate, interpret and analyse financial data to monitor financial property transactions.
Evaluate financial data against reporting requirements.
Apply financial and investment tools to interpret and report on financial investment data.
Monitor the implementation of risk.
Plan and implement financial controls.
DATE
LEARNER REFLECTION
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SUPERVISOR COMMENTS :
REMEDIAL / IMPROVEMENT
AREAS
_______________________________
SUPERVISOR/PRINCIPAL AGENT/
FINANCIAL OFFICER SIGNATURE
_________________________________
ASSESSOR SIGNATURE
____________________________
LEARNER SIGNATURE
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Annexure A – Answer Sheet Templates
Answer Sheet Task 3 – Activity 1:Knowledge Assignment– Question 1.2
a.
Relevance, reliability, comparability, and consistency are
referred to as...
b.
Advertising costs and research and development costs are
usually ...
c.
Increases in equity from peripheral transactions are referred to
as ...
d.
Selling, general and administrative expenses are referred to
as...
e.
Allows accountants to round financial statement amounts to
the nearest thousand rand.
f.
Results in dozens of pages of notes to the financial statements.
g.
Assumption that the company will continue in business long
enough to carry out its objectives and commitments.
h.
When doubt exists between two alternatives, the accountant
should select the one with the lesser asset amount or the one
resulting in less profit.
i.
Allows an ongoing business to prepare quarterly financial
statements.
j.
Requires accrual accounting and adjusting entries.
k.
Defined as the cash or cash equivalent amount.
l.
Justifies stating assets at cost and the deferral of some costs to
a future accounting period.
m. Also referred to as periodicity.
n.
Allows inexpensive equipment to be expensed
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Learning Unit 4 Portfolio Guide
immediately instead of being depreciated.
Answer Sheet Task 3 - Activity 2: Practical Assignment– Question 2.1a
ENTRY
INFORMATION PROVIDED TO BUSINESS OWNER
Less accumulated
depreciation
Pre-paid
expenses
Investments
Other
Income taxes
payable
Equity and other
investments
Inventories
Investment
capital
Property and
equipment
Accrued wages
Goodwill
Accounts payable
Accounts
receivable
Mortgage
payable
Cash
Unearned
revenue
Accumulated
retained earnings
Other
Leasehold
improvements
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Learning Unit 4 Portfolio Guide
Accrued
compensation
ABC Holdings – Balance Sheet
Assets
Current assets:
2009
Total current assets
Fixed assets:
2009
Total fixed assets
Other assets:
2009
Total other assets
Total assets
Liabilities and owner's equity
Current liabilities:
2009
Total current liabilities
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Long-term liabilities:
2009
Total long-term liabilities
Owner's equity:
2009
Total owner's equity
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41