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: 

Apply International Financial Reporting Standards (IFRS4) to risk financing and insurance 
SAQA US ID UNIT STANDARD TITLE
243159  Apply International Financial Reporting Standards (IFRS4) to risk financing and insurance 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
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 
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 learner in risk finance such as non-accountants, accountants who require insurance knowledge, underwriters, intermediaries to large corporations, third party entities and self-insured clients whose portfolios include self retention, intermediaries who give advice relating to risk finance and to learners who work in cell captives administrators, third part business administrators, insurance accounts, credit risk insurance and learners whose work relates to loss of profits in underwriting policies and assessing loss of profits claims from a client's books. It will be useful for Senior Managers of insurance organisations, Lawyers, Accountants, Internal and External Auditors and Reinsurers.

The qualifying learner is capable of:
  • Explaining the implications of international accounting standards for risk financing.
  • Analysing the overall financial status of an entity.
  • Applying knowledge of IFSR4 to create and manage a client's portfolio.
  • Applying knowledge of tax legislation to comply with international accounting standards in the South African context. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • The IFRS4 international accounting standard for reporting.
  • Financial strength of an entity includes, but is not limited to, profitability, solvency, equity, changes in equity, ownership, growth and security.
  • Conditions under which a cell captive arrangement can be put into place include, but are not limited to, FAIS license (in terms of the Financial Advisors and Intermediary Services Act) the Insurance Guarantee Fund (IGF) and Captive Share Holding Agreement. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the implications of international accounting standards for risk financing. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The international standards for reporting (IFRS4) applicable to insurance organisations accounting practice are explained with reference to the business of insurance. 

    ASSESSMENT CRITERION 2 
    The use of information from financial statements is explained with reference to risk retention capacity and levels of insurability. 

    SPECIFIC OUTCOME 2 
    Analyse the overall financial status of an entity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial strength of an entity is determined from a set of financial accounts in accordance with generally accepted accounting practice (IFRS4). 

    ASSESSMENT CRITERION 2 
    The risk retention capacity of an entity is analysed to define self insurance retention levels. 

    ASSESSMENT CRITERION 3 
    The financial solvency and strength of an entity is analysed to determine whether the entity qualifies for statutory insurance guarantees. 

    SPECIFIC OUTCOME 3 
    Apply (IFRS4) to create and manage a client's portfolio. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A risk is analysed to determine the adequacy of current conventional cover, self retention level and risk transfer within the parameters of insurance and international accounting standards. 

    ASSESSMENT CRITERION 2 
    Conditions under which a third party cell captive arrangement can be put into place are explained and applied to a selected portfolio. 

    ASSESSMENT CRITERION 3 
    The affect of international standards on Capital Adequacy Solvency Margins of insurers are explained with reference to a specific portfolio. 

    ASSESSMENT CRITERION 4 
    (IFRS4) and international standards at an accounting level are applied to explain a specific portfolio and the affect on an insurer. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of tax legislation to comply with international accounting standards in the South African context. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Different forms of taxation that apply to captives are identified for a South African context. 

    ASSESSMENT CRITERION 2 
    A balance sheet and profit and loss account are interpreted to explain individual and group premium reserve, incurred but not reported level, creditors and liability. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • 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 capable of identifying and solving problems in which responses show that responsible decisions using critical thinking have been made in analysing the overall status of an entity and ensuring compliance. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing the financials of a corporate client. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems in applying knowledge of international standards in a South African context. 

    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  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 


    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. African Resources & Financial Training (Pty) Ltd 
    2. Invuya Institute of Learning (Pty) Ltd 
    3. Masifunde Training Centre (Pty) Ltd 
    4. Ripple Effect 4 (Pty) Ltd 



    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.