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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain and apply accounting and valuation rules for investment instruments 
SAQA US ID UNIT STANDARD TITLE
117775  Explain and apply accounting and valuation rules for investment instruments 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
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 5  Level TBA: Pre-2009 was L5  25 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
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 persons who conduct administrative functions in the middle and back office in an Asset Management environment.

A person credited with this Unit Standard will be able to:
  • Explain accounting entries and the application thereof in the investment environment
  • Apply accounting entries generated as a result of various investment activities.
  • Apply the policy/principles governing the valuation of all the investment instruments. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Mathematical Literacy at NQF Level 4
  • Communication at NQF Level 4
  • The Unit Standard entitled, "Define the mechanics and participants of the different trade cycles for all investment instrument types" 

  • UNIT STANDARD RANGE 
    The scope of this Unit Standard covers accounting and valuation rules which include but is not limited to: book value, amortization, market value, nominal value, realized profit, unrealized profit, accrual. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain accounting entries and the application thereof in the investment environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Accounting principles per investment instrument within the investment environment are defined as per GAAP. 

    ASSESSMENT CRITERION 2 
    Applications of accounting principles are defined within the investment environment as per GAAP. 

    ASSESSMENT CRITERION 3 
    The consequences of incorrect accounting entries on an investment system are explained within the investment environment. 

    SPECIFIC OUTCOME 2 
    Apply accounting entries generated as a result of various investment activities. 
    OUTCOME RANGE 
    Accounting principles:- realised and unrealised profit and losses, valuations 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Accounting entries resulting from investment activities are explained as per the defined company process. 

    ASSESSMENT CRITERION 2 
    The Chart of accounts in the investment general ledger is understood and applied as per defined company process. 

    ASSESSMENT CRITERION 3 
    Incorrect accounting entries are identified and corrected as per defined company procedure. 

    ASSESSMENT CRITERION 4 
    Accounting entries are identified for new instruments and types of transactions considering accounting principles and policies. 

    ASSESSMENT CRITERION 5 
    Accounting entries are processed to comply with valuation policy. 

    SPECIFIC OUTCOME 3 
    Apply the policy/principle governing the valuation of all the investment instruments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Valuation principles are defined and linked to the correct investment instruments. 

    ASSESSMENT CRITERION 2 
    Valuation principles are followed as per valuation policy per instrument type. 

    ASSESSMENT CRITERION 3 
    Basic principles of time value, present and future value are understood and applied as set out within the defined company guidelines. 

    ASSESSMENT CRITERION 4 
    The impacts resulting from changes to valuation methods are understood and applied as per defined company procedure. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Accounting principles.
  • Accounting entries resulting from investment activities.
  • Policy/principles governing valuations 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking processes by identifying and applying the correct accounting entries. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organization in order to gather sufficient information to execute the required accounting entries. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information required to execute the accounting entry. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

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

    UNIT STANDARD NOTES 
    Supplementary information:

    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms". ISBN 1-919850-04-X
  • NPV - Net Present Value
  • EPS 0 Earning per Share
  • NAV - Net Asset Value
  • BV - Book Value
  • MV - Market Value
  • FV - Future Value 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  61589   National Certificate: Banking  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    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. Chartall Business College 
    2. The Institute of Literacy Advancement 



    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.