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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Select and apply financing instruments in the valuation of a business entity and financial assets 
SAQA US ID UNIT STANDARD TITLE
12950  Select and apply financing instruments in the valuation of a business entity and financial assets 
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  10 
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 
People credited with this unit standard are generally found within the financial management field. On successful completion of the unit standard, practitioners will be able to select and apply standard financing instruments for effective risk minimisation in the valuation of business entity and financial assets. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Unit standard, Evaluate current and proposed activities in an accounting environment, NQF level 5. 

UNIT STANDARD RANGE 
Valuation of equity, preference shares, debentures and bonds, and convertible securities. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Apply the principles of finance to the valuation of business and financial assets. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The techniques that are applied to determine the value of equity shares, preference shares, debentures and bonds, and convertible securities are described as per accepted valuation principles. 

ASSESSMENT CRITERION 2 
2. The various approached to valuations are explained in relation to specific areas of valuation (Range: Earnings, Dividends, Free Cash Flow, Net assets). 

ASSESSMENT CRITERION 3 
3. The principles of finance are explained in a meaningful manner. 

ASSESSMENT CRITERION 4 
4. The principles of finance are applied in the valuation of a business entity and financial assets in order to minimise risk. 

ASSESSMENT CRITERION 5 
5. The principles of finance are applied in the valuation of a business entity and financial assets in the most appropriate manner for the situation. 

SPECIFIC OUTCOME 2 
Select and apply financing instruments in business and asset valuations. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Valuations that determine the value of equity, preference shares, debentures and bonds, and convertible securities are completed though the application of the appropriate valuation technique. 

ASSESSMENT CRITERION 2 
2. Valuation for mergers and acquisitions are completed in order to determine the effect of synergy. 

ASSESSMENT CRITERION 3 
3. Valuations for mergers and acquisitions take account of other pricing considerations. 

ASSESSMENT CRITERION 4 
4. Financing instruments are selected that will provide the most value to the organisation under valuation. 

ASSESSMENT CRITERION 5 
5. Financing instruments are listed and described as per normal usage. 

ASSESSMENT CRITERION 6 
6. The sources and forms of finance are described in a meaningful manner. 

ASSESSMENT CRITERION 7 
7. Financing instruments are selected and evaluated for effective risk minimisation. 

SPECIFIC OUTCOME 3 
Conduct business entity and financial asset valuations. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Valuations conducted include the valuation of equity, preference shares, debentures and bonds, and convertible securities. 

ASSESSMENT CRITERION 2 
2. An approach to the valuation is utilised that best serves the interest of the client. 
ASSESSMENT CRITERION RANGE 
Approaches include earnings, dividends, free cash flow and net assets
 

ASSESSMENT CRITERION 3 
3. The effect of synergy and other pricing considerations are taken into account in valuations for mergers and acquisitions. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
Accreditation for this unit standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative assessment by a registered assessor.

Moderation activity comments by SGB's, organisations and individuals may be forwarded to NSB03. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
A demonstrated understanding of:
  • Principles of finance
  • Financing instruments
  • Functions of financial management
  • Sources and forms of finance
  • Valuations
  • Risk minimisation 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems in which responses display the responsible decisions using critical and creative thinking have been made. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsibly and effectively. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, organise and critically evaluate information. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills in the modes of oral and written presentations. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems. 

    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 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  79886   National Certificate: Business Advising  Level 5  NQF Level 05  Reregistered  2023-06-30  SERVICES 


    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.
     
    NONE 



    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.