Study Guide

Department of Accounting

Financial Accounting
FRK 705
The ssociation to dvance ollegiate chools of usiness (AACSB)

The EMS Faculty is at an advanced stage in an accreditation process with the AACSB and in time, the Faculty
will be accredited as an AACSB institution. This accreditation is over and above the range of professional and
other accreditations that individual programmes in the faculty may already have. Specific benefits derived
from the AACSB accreditation are the following:
 Highest standards are guaranteed
AACSB is one of the most rigorous and selective types of evaluation. Your education is carefully planned,
carefully taught and carefully analysed to ensure effective learning and the achievement of the EMS
mission and learning goals.

 You will be in demand

Studying at an AACSB institution will give you the highest recognition and top universities, locally and
internationally, and employers will be interested in you. You will be noticed and stand out as a graduate
of a quality institution.
Table of Contents
1 Introduction
1.1 Welcome ....................................................................................................................... 3
1.2 Educational approach .................................................................................................... 3
1.3 Responsibilities of the student ....................................................................................... 4
2 Administrative information
2.1 Contact details............................................................................................................... 5
2.2 Timetable ...................................................................................................................... 6
2.3 Accounting Assist programme ........................................................................................ 6
2.4 Study material and purchases ........................................................................................ 6
2.5 Lecture slides................................................................................................................. 6
2.6 Intellectual property: video, sound and other recordings ................................................ 6
2.7 Class representative....................................................................................................... 7
2.8 Grievance procedures .................................................................................................... 7
2.9 Communication with students ....................................................................................... 8
3 Module information
3.1 Purpose of the module................................................................................................... 9
3.2 Module outcomes.......................................................................................................... 9
3.3 Module structure ........................................................................................................... 9
3.4 SAICA’s Competency Framework .................................................................................... 9
4 Assessment
4.1 Assessment plan .......................................................................................................... 17
4.2 Assessment criteria...................................................................................................... 17
4.2.1 Continual evaluation tests (CEV-tests) and homework assignments 17
4.2.2 Qualification for extra time 18
4.2.3 Writing of tests and exams 18
4.2.4 Pocket calculators and cellular telephones 19
4.3 Assessment policy ....................................................................................................... 20
4.3.1 Admission to examination and pass requirements 20
4.3.2 Re-examination and special examinations 20
4.3.3 Perusal of examination, re-examination and special examination scripts 21
4.4 Plagiarism.................................................................................................................... 21
4.5 Resubmission of test/assignment scripts ...................................................................... 21
4.6 Excuses / Apologies ..................................................................................................... 24
5 Support services
5.1 Safety in the evening and emergencies......................................................................... 26
5.2 E-learning support ....................................................................................................... 26
5.3 Other support services: ................................................................................................ 26
5.4 EMS student support by Faculty Student Advisors *...................................................... 28
5.5 Alphabetical list of degrees/diplomas/fields of study and faculty administrators
responsible for those degrees ...................................................................................... 29
6. Other matters
6.1 Examples of the format of letters, emails, memoranda and reports to clients................ 31
7. Rules of conduct for EMS students…………………………………………………………………………..35

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1 Introduction
1.1 Welcome
Welcome to Post Graduate Financial Accounting and good luck with your post graduate studies.

We are thoroughly aware that you are enrolled for this module with the eventual goal of attaining the
CA(SA) qualification. For this reason, it is of the utmost importance that you thoroughly study this
learner’s manual so that you may structure your studies in a meaningful manner.

It is important that you bear in mind that you are studying to become a Chartered Accountant and that
this module is seated in the Department of Accounting - you are therefore intending to continue your
studies until the SAICA examinations. To this end, you should identify your priorities now, in order to
successfully complete this module.

You will notice that the emphasis of modules provided at the Department of Accounting is on regular
preparation. It is important that you realise that the work cannot be neglected during the year and then
be memorised shortly before a test.

The full-time program consists of the attendance of formal lectures, the attendance of Accounting Assist
sessions (voluntary), the writing of regular continual evaluation tests and the doing of homework
assignments. You should see the lectures and especially the Accounting Assist sessions as an opportunity
to freely ask questions and/ or to discuss a specific topic in detail. From this it is evident that you should
PREPARE thoroughly for lectures and Accounting Assist sessions and that you should ACTIVELY
PARTICIPATE as far as possible, in order to broaden your knowledge of the module. Proper completion of
homework questions and proper preparation for classes will greatly contribute towards your success.

The student, who is motivated, works hard and comes to class with the right attitude, will definitely make
a success of Financial Accounting. The personnel of the Department of Accounting will do everything in
their power to assist you with your academic problems.

The clever man knows all the roads, but the wise man
knows only one correct road.

CJ Langenhoven

1.2 Educational approach

Our teaching philosophy is to equip our students with the knowledge and skills that they will need to
be successful in professional examinations as well as in their working environment (i.e. to deliver well
rounded individuals), in so doing sowing the seeds for lifelong learning. To achieve this, the focus of
our teaching is on explaining the “why” and not the “how”. We attempt to simplify a complex
curriculum as far as possible, to enable students to cope with the large volume of work. This
philosophy is based on mutual responsibilities of the student and the lecturer. The student assumes
responsibility for self-learning to obtain technical knowledge and to develop his/her professional skills
and competencies. The lecturer assumes responsibility for teaching the technical knowledge, and for
facilitating and managing the learning process.

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1.3 Responsibilities of the student
According to the student-centred teaching approach as subscribed to by the University of Pretoria,
you are expected to prepare for each formal lecture in advance. Preparation includes, amongst others,
that you carefully study the prescribed reading matter for each lecture before the lecture so as to
ensure that you acquire a basic knowledge or revise your current basic knowledge of the topic
involved.

Lecturers will test your knowledge of the above reading matter at the beginning of each lecture and
your acquired/revised basic knowledge will be used as a point of departure during the lecture without
attending to it again. From the latter, it should be clear that you are obliged to do the preparatory
reading so as to ensure that you derive maximum benefit from the lecture – you are therefore strongly
advised to do the advance reading. In order to facilitate you in this regard, preparatory reading will be
supplied on a weekly basis in advance, where applicable.

(Refer Competency Framework, specifically pervasive skills, with specific reference to IA-4, IB-1, IB-3,
IC - 2.5, IC-3.1 and IC-5.1)

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2 Administrative information
2.1 Contact details
The following lecturers will lecture allocated topics during scheduled lecture times during the year:
Telephone
Lecturer Office Consulting hours
number
Ms T Tomes
(subject responsible lecturer) EMS 2-39 420 3429 Will be communicated
[email protected]

Ms D Pretorius
EMS 2-41 420 5519 Will be communicated
[email protected]

Mr A van der Burgh

EMS 2-42 420 4488 Will be communicated
[email protected]

Ms R Von Well
EMS 2-43 420 4348 Will be communicated
[email protected]

Dr C Smith
EMS 2-36 420 4487 Will be communicated
[email protected]

Mr D Goodrum
(academic trainee) EMS 2-52.2 420 5994 Will be communicated
[email protected]

You are welcome to discuss any problems you might have with the contents of the course, as well as
any problems that affect your academic performance, with the lecturers. This applies to all students -
not only to those who obtain poor results. Please, do not wait until the end of the academic year to
discuss your problems - it is too late by then! (Refer Competency Framework, specifically pervasive
skills, with specific reference to IB-1, IC-3.1, IC-4.1 and IC-4.3)

Please keep to the consulting hours as stipulated above – they have been instituted so that the
lecturers may also complete their other formal university duties (such as research and administration).
(Refer Competency Framework, specifically pervasive skills, with specific reference to IB-6)

If you are not able to see a lecturer during his/her consulting hours you are requested to make an
appointment telephonically or by e-mail.

Your Faculty Student Advisor can advise you on goal-setting, adjustment to university
life, time management, study methods, stress management and career exploration.
Book an individual consultation or attend a workshop. For other support services see
Section 5.

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2.2 Timetable
Post Graduate Financial Accounting – FRK 705 lectures are presented on Wednesday mornings and Friday
mornings (and sometimes on other days). Other details regarding the venues, dates and times are
supplied in the General Information Booklet for Post Graduate Diploma in Accounting Sciences (PGDAS)
- 2022.

THE PGDAS VENUES:

GROUP 1:
Wednesdays: EMS 2-151 (08h00 – 10h15)
Fridays: EMS 2-151 (10h45 – 13h00)
Other days: To be advised (see programme)

GROUP 2:
Wednesdays: EMS 2-150 (10h45 – 13h00)
Fridays: EMS 2-150 (08h00 – 10h15)
Other days: To be advised (see programme)

Students are expected to be on time for lectures. (Refer Competency Framework, specifically
pervasive skills, with specific reference to IB-1, IB-6 and IB-10)

2.3 Accounting Assist programme

In line with SAICA’s (South African Institute of Chartered Accountants) initiative to increase the pass
rate of students in the CA programme, a support programme, Accounting Assist, was implemented in
2008 at the University of Pretoria. This programme provides additional academic assistance to
students on a voluntary basis.

(Refer Competency Framework, specifically pervasive skills, with specific reference to IB-3)

2.4 Study material and purchases

1 GAAP Handbook 2022 Vol 1 & 2: Badenhorst, et al, LexisNexis.

2 The Annotated IFRS Standards – Standards issued at 1 January 2021 (red books), LexisNexis;
(also known as: SAICA Student Handbook 2021/2022).

2.5 Lecture slides

Students do not automatically get copies of lecture slides. However, lecture slides may sometimes be
made available to students as an aid, if the topic, according to the discretion of the lecturer, justifies
it. Lecture slides will be made available via ClickUP, where applicable.

2.6 Intellectual property: video, sound and other recordings

The intellectual property on lectures and study material vests in the University of Pretoria. No sound or
video recording of whatever nature is, therefore permitted during lectures without the written approval
of the Head of Department. A violation of this regulation may lead to disciplinary action.

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2.7 Class representative
A Class Representative must be elected by the end of January. This person will act as the spokesperson
of the group and act as liaison between the lecturers and learners.

Your class representative in Financial Accounting 705 is:

Name: .....................................................................................................

Tel: ...........................................................................................................

2.8 Grievance procedures

- All issues should be reported in writing, providing details of the complaint or issue.
- Postgraduate students who experience a difficulty or wish to raise a concern or take up an issue
whilst studying at the University of Pretoria, should do so in accordance with the following processes:
(a) Most issues or complaints can be resolved between the student and the supervisor or course
co-ordinator without further escalation. Where the issues or complaints raised are not of a
purely academic nature, the supervisor or course co-ordinator should assist the student as far
as possible by directing the student to the relevant department/division/unit within the
University that can render the appropriate assistance.
(b) As a first line of action, a postgraduate student should approach his or her supervisor (in the
case of Research Master’s or Doctoral students), or the course co-ordinator (in the case of
Honours and Coursework Master’s students). The supervisor or course coordinator is best
placed to deal with any personal or study related problem that the student may encounter. The
supervisor or course co-ordinator will be able to discuss issues of funding, the study project and
also, to direct the student to appropriate personal support services where necessary. (c) In
instances where the problem relates to the supervision of the student or the conduct of the
supervisor or course co-ordinator, the matter should be escalated to the Head of
Department/School/Centre who will attempt to resolve the problem.
(d) In the event that intervention at the Head of Department/School/Centre level is unsuccessful,
the matter may be escalated to the Deputy Dean: Research and Postgraduate Studies or, in the
absence of such a Deputy Dean, to the Chair of the Research Committee of the Faculty. (e) If
the matter still remains unresolved, it may be escalated to the Dean of the Faculty.
(f) In the event that a postgraduate matter has not been resolved at Faculty level, the student may
refer the matter to the Vice-Principal: Research and Postgraduate Education, who will attempt
to resolve the matter.
(g) Only after all of the above steps have been followed and the matter remains unresolved, the
matter may be escalated to the Vice-Chancellor and Principal, whose decision will be final.

(Refer Competency Framework, specifically pervasive skills, with specific reference to IB-6, IC-4.1 and
IC-4.3)

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2.9 Communication with students
All emails from the EMS Faculty and University of Pretoria will be sent to you at your UP email address.
It is assumed that any emails sent to this UP email address, will be read by yourself.

You are strongly advised to check this email address at least twice a day and EMS proposes that you
do this during the course of the morning and again before the close of business.

Announcements relating specifically to FRK 705 will be posted on ClickUP. While every effort may be
made to communicate with you through other available channels, you are deemed to have read all
announcements posted on ClickUP.

It is also strongly advised that you check ClickUP at least twice a day and EMS proposes that you do
this during the course of the morning and again before the close of business.

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3 Module information
3.1 Purpose of the module
Post graduate financial accounting (FRK 705) is a module which is designed for students who specialise
in Accounting with the aim to qualify themselves as Chartered Accountants. The module extends over
a year and consists of different areas which have to be studied as a whole.

Financial reporting is not a goal in itself, but is aimed at making information available to facilitate the
taking of a business and/or economic decision. The objectives of financial reporting are not cast in
concrete – they are influenced by the economic, legal, political and social environment within which
financial reporting takes place.

Financial accounting includes not only financial statements, but also other means of communicating
information, which is directly or indirectly provided by the accounting system or which relates to it.
Financial statements are however the main component of financial reporting as it is the primary
manner in which accounting information relating to an organisation is imparted to interested parties.

The Financial Accounting curriculum includes the knowledge and schooling required of the learner by
the time that he/she has to write the first SAICA examination (Initial Test of Competence). The module
is based on general conceptual principles, which will require a high level of knowledge and insight. In
addition to acquiring the necessary techniques to account for certain transactions and to prepare
accounting statements, you will be required to identify the accounting principles on which the
techniques are based throughout.

3.2 Module outcomes

Please refer to the Roadmap to FRK 705, on ClickUP, for the specific outcomes of FRK 705 per topic.

3.3 Module structure

The syllabus of Financial Accounting is primarily aimed at external financial reporting by business
entities. In spite of this, it is designed to enable learners to:

 prepare financial reports (including group financial statements) in any form to fulfil the
requirements of the users of financial information, in accordance with IFRS and statutory
requirements;

 analyse and interpret financial reports, which are prepared for external users.

3.4 SAICA’s Competency Framework

SAICA developed and approved a competency framework in 2008 and this competency framework
was examinable for the first time in the Initial test of Competence (ITC) of SAICA in 2013.

This Competency Framework encapsulates the competencies (broad range of knowledge, skills and
attributes) of a Chartered Accountant (SA) at entry point to the profession (i.e. when one is eligible to
become a SAICA member). These competencies have reference to the CA(SA) as a leader with a
professional accounting background and include –
 Pervasive qualities and skills, which are fully integrated with
 Specific competencies.

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Pervasive skills

The following table sets out the various pervasive skills identified by SAICA, and also indicates which
of these skills will most probably be assessed in Financial Accounting. These pervasive skills could be
assessed as part of any topic in the Financial Accounting syllabus.

IA Ethical behaviour and professionalism

IA-1 Uses an ethical reasoning process
IA-2 Protects the public interest
IA-3 Acts competently with honesty and integrity 
IA-4 Performs work competently and with due care 
IA-5 Maintains objectivity and independence 
IA-6 Avoids conflict of interest
IA-7 Protects the confidentiality of information
IA-8 Maintains and enhances the profession’s reputation 
IA-9 Adheres to laws, professional standards and policies and the rules of professional
conduct when exercising professional judgement

IB Personal attributes
IB-1 Self-manages 
IB-2 Demonstrates responsible leadership
IB-3 Maintains and demonstrates competence and recognises limits 
IB-4 Strives to add value in an innovative manner
IB-5 Manages change 
IB-6 Treats others in a professional manner 
IB-7 Is a life-long learner 
IB-8 Plans and effectively manages teams and projects
IB-9 Works effectively as a team member
IB-10 Manages time effectively 
IB-11 Demonstrates good corporate citizenship attributes

IC Professional skills

IC-1 Obtains information

IC-1.1 Gathers or develops accurate and relevant information and ideas 
IC-1.2 Develops an understanding of the entities environment

IC-2 Examines and interprets information and ideas critically (critical thinking)
IC-2.1 Analyses information or ideas 
IC-2.2 Performs computations 
IC-2.3 Verifies and validates information 
IC-2.4 Evaluates information and ideas 
IC-2.5 Integrates ideas and information from various sources (integrated thinking) 
IC-2.6 Draws conclusions / forms opinions 

IC-3 Solves problems and makes decisions

IC-3.1 Identifies and diagnoses problems and/or issues 
IC-3.2 Develops solutions 
IC-3.3 Make decisions and recommendations and provides advice Decides / 
recommends / provides advice

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IC-4 Communicates effectively and efficiently
IC-4.1 Seeks and shares information, facts and opinions through written and oral 
discussion
IC-4.2 Prepares documents in written and graphic form 
IC-4.3 Presents information effectively to enhance understandability and usefulness 

IC-5 Manages and supervises

IC-5.1 Plans and manages projects 
IC-5.2 Identifies need for internal and external expertise
IC-5.3 Facilitates decision-making 
IC-5.4 Leads effective meetings
IC-5.5 Supervises

IC-6 Understands and uses appropriate IT systems and tools

IC-6.1 Understands computerised business systems
IC-6.2 Uses appropriate IT software tools

IC-7 Considers and applies legal concepts

IC-8 Understands how the national and international environment impacts a CA’s 
role

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Specific compentencies

The specific competencies are:

 Strategy, Risk Management and Governance;
 Accounting and External Reporting;
 Auditing and Assurance;
 Financial Management;
 Management Decision Making and Control; and
 Taxation.

The module Financial Accounting 705 addresses the competencies in Accounting and External
Reporting integrated with the required pervasive qualities and skills (as identified in 1 above).

The Competencies Level

III-1 Analyses financial reporting needs and establishes the necessary
systems
III-1.1 Identifies the appropriate reporting framework X
III-1.2 Analyses financial reporting needs X
III-1.3 Develops or evaluates reporting processes to support financial reporting
X
III-1.4 Develops reliable information X
III-1.5 Establishes or enhances financial reporting using IT I
III-2 Conducts external financial reporting
III-2.1 Develops or evaluates accounting policies in accordance with IFRS X
III-2.2 Accounts for the entity’s routine transactions X
III-2.3 Accounts for the entity’s non-routine transactions X
III-2.4 Prepares financial statements using IFRS X
III-2.5 Prepares or evaluates financial statement note disclosure X
III-2.6 Explains the financial statement results and balances to
stakeholders X
III-2.7 Maintains awareness of key ideas and principles of proposed financial
reporting standards changes A
III-2.8 Considers the integrity of financial information in the integrated report
A
III-3 Conducts specialised reporting
III-3.1 Identifies and analyses specific reporting obligations I
III-3.2 Identifies regulatory and other filing requirements A
III-3.3 Identifies and analyses non-financial reporting needs I
III-3.4 Conducts external and internal non-financial reporting I

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Levels of Proficiency

The degree of expertise an individual is expected to exhibit in a competency.

This document defines the levels of proficiency candidates must demonstrate at the time of writing
SAICA’s ITC. Three distinct and increasingly higher levels of proficiency are identified. Level A
requires the lowest proficiency, whereas level X requires the highest. Each of the levels are
defined below. The levels indicate the depth of detailed knowledge, w h i c h is required of the
prospective CA, the extent to which that knowledge is required to be applied and integrated, and
the complexity of the problem to be solved in each aspect of this competency. These levels in
turn make it possible to determine the degree of rigour and independence with which a newly
qualified CA should be able to complete the task described.
It is stressed that for all three levels a high degree of contextualisation is required. By requiring a
high degree of contextualisation it is recognised that competence in the field of accounting is
‘grounded in the real world’ and that teaching, learning and assessment are most effectively
executed through application in ‘real world’ scenarios.

Level A (Awareness)

Requires an awareness of the key ideas and principles within the area. Demonstration of
technical expertise or detailed knowledge in this area is not required. The candidate identifies and
explains the significance of the competency, and the types of circumstances in which it would arise
or be applied.

Level I (Initiates the Task)

Demonstrates an understanding of the requirements of the task and identifies and applies the
required professional skills, including basic quantitative and qualitative analysis, to perform the
task on a preliminary basis (recognising that a review by more senior staff is still necessary). An
intermediate understanding of the subject matter is required. Complex calculations are not
required. Integration with other competencies is straightforward and is of limited complexity.
Level I includes level A proficiency.

Level X (Completes the Task)

Completes all elements of a specified task successfully; therefore an advanced understanding

of the subject matter is required. Relevant pervasive skills and reflective capacity should be
demonstrated at an advanced level. Technical skills expected to be demonstrated at this level
include, for example, performing complex calculations and concluding on an appropriate course of
action. Proficiency at level X is demonstrated when the problem is clearly identified and thoroughly
analysed, or when a situation is evaluated and useful recommendations are made. This level of
proficiency includes level A and I proficiencies.

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Content

The academic programme is principally concerned with the following:

 International Financial Reporting Standards

Specific Exclusions
In the context of the included Acts it is more appropriate to identify areas that will be seen as
specialist and to exclude them from the academic programme as this programme concerns
itself with the development of entry-level CAs and specialist areas are not considered appropriate
at this point.

The following industries, entities and/or activities are specifically excluded:

 Agriculture
 Co-operatives
 Collective investments (e.g. unit trust funds).

KNOWLEDGE REFERENCE LIST

Knowledge and understanding of content provide the foundation for the acquisition of a
competency (see above). The list which follows indicates the content of this foundation for
competencies in Accounting and External Reporting. It is recognised that depth of knowledge and
understanding will be informed by the competencies to which content relates. In order to assist
providers with guidance as to depth of knowledge and understanding required, the following
description for each knowledge level may be useful:

Level 1 (Basic)
At this level the candidate is required to acquire a knowledge and understanding of the core /
essence of the subject matter which include that the subject matter exists, the significance and
relevance thereof, and its defining attributes.

Consequently the candidate is required to have a knowledge and understanding –

 of the purpose and objective of the subject matter;
 of the underlying principles / practices / legislation / requirements (hereafter ‘content’);
 of how the content relates to the discipline as a whole and to other disciplines (how it ‘fits
in’); and
 that is at a broad conceptual level.

At this level, knowledge and understanding of detail, including procedural or numerical aspects
specific to the subject matter, are not required.

At this level the candidate should be equipped with the extent and depth of knowledge and
understanding which enable him/her to recognise issues when encountered and to seek further
depth of knowledge and understanding.

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Level 2 (Intermediate)
At this level the candidate is required to acquire a detailed knowledge and understanding of the
central ideas and issues that comprise the substance of the subject matter.

Consequently, the candidate is required to have a knowledge and understanding –

 of those aspects of the content that are central to the subject matter, so as to achieve a
sound conceptual understanding; and
 of the detail, including procedural and numerical aspects specific to the subject matter, where
appropriate.

Knowledge and understanding of complexities and unusual / exceptional aspects are, however,
not required.

At this level the candidate should be equipped with a sound knowledge and understanding of the
substance of the subject matter to enable him/her to deal with issues and solve problems that are
central to the topic. The candidate has a sound conceptual knowledge which enables him/her
to further explore and understand complexities, if necessary.

This level includes the level of knowledge and understanding required for level 1 (Basic).

Level 3 (Advanced)
At this level the candidate is required to acquire a thorough knowledge and rigorous understanding
of the subject matter. This level of knowledge and understanding extends beyond a sound
understanding of central issues, to include complexities and unusual / exceptional aspects associated
with the subject matter.
Consequently the candidate is required to have a knowledge and understanding –
 of all content that is required to develop a thorough and rigorous understanding of the subject
matter;
 of complexities; and
 of sufficient depth to clearly locate content in the general field of accountancy (as described by
competencies II – VII) and to identify implications and relationships.
At this level the candidate should be equipped with a level of knowledge and understanding of the
substance of the subject matter that enables him/her to perform tasks and solve problems with a
high degree of rigour, exercising sound judgement.
This level includes the level of knowledge and understanding required for level 1 (Basic) and
level 2 (Intermediate).

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The knowledge list consists primarily of the Framework plus IFRS. The knowledge list also includes
specialised topics not currently incorporated in IFRS.
Knowledge
Level
The Objectives of Financial Statements 3
 The provision of useful information 3
 Users and their information needs 3
 Economic decisions requiring financial information
The need for a conceptual framework and for standards 3
 Fair presentation 3
Reporting requirements 3
 IFRS (GAAP) 3
 Statutory reporting requirements, limited to the following
 Companies Act 3
 Johannesburg Securities Exchange requirements 1
 King IV Report and King Code (also see the Strategy, risk
management and governance knowledge reference list) 1
 Sustainability reporting 2
 Disclosure
 Underlying assumptions 3
Qualitative characteristics of financial reporting 3
 Fundamental (relevance and faithful presentation) 3
 Enhancing (comparability, verifiability, timeliness and understandability) 3
The elements of financial statements 3
 Financial position
 Assets 3
 Liabilities
 Equity
 Performance
 Revenue / gains 3
 Expenses / losses
Recognition of the elements of financial statements 3
Measurement of the elements of financial statements 3
Standard-setting process 1
Financial statements analysis (see Financial Management syllabus) 3
Preface to the standards of GRAP (November 2012) 1
Specialised topics – SAICA
 The insurance industry and IFRS 1
 The banking industry and IFRS 1
 Other regulated industries – medical schemes 1
 Other regulated industries – retirement funds 1
 Mineral resources and mining exploration costs 1
 IFRIC 12 - service concession arrangements 1
 Sustainability & Integrated Reports: Reports & Assurance 1
 XBRL 1

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4 Assessment
4.1 Assessment plan
Complete details relating to test dates and times are supplied in the Information Brochure that
accompanied your admission document. (Refer Competency Framework, specifically pervasive skills
on pages 10 - 11, with specific reference to IB-1)

Note that students should take their seats with the appropriate spacing between them beforehand so
that the test may commence at the specified starting time.

No special or sick tests will be written.

The year mark will usually be calculated as follows:

TYPE OF EVALUATION % OF YEAR MARK % OBTAINED BY

YOU
Year test 1 30%*
Year test 2 20%*
Year test 3 25%*
CEV-tests 20%*
Homework assignments 5%*
TOTAL 100%

Note:
If a year test was not written, the composition of the year mark will be adjusted according to the
discretion of the Department of Accounting.

The weighting of the tests and other items forming part of the semester/year mark
calculation may be altered by the Head of Department at his/her discretion in
consultation with the module lecturers.

4.2 Assessment criteria

4.2.1 Continual evaluation tests (CEV-tests) and homework assignments

During the year, marks will be awarded for continual evaluation tests (CEV’s). Homework assignments
will also be included in the calculation of the year mark (refer point 4.1).

Homework assignments will only be marked if the student has also attended the lecture. Students are
not allowed to hand in any assignments except their own. Therefore, if you do not attend a lecture, it
may happen that you do not receive credit for your assignment even though you did complete it. (If
lectures are online, the procedure for handing in of homework will be communicated on ClickUP). The
questions that are handed in will be evaluated and a mark will be awarded on the basis of the quality,
completeness and/ or accuracy of the assignment and will be taken into account when the year mark
is calculated (refer point 4.1).

(Refer Competency Framework, specifically pervasive skills, with specific reference to IA-3, IA-4, IB-10,
IC1-1, IC-2.1 – IC-2.6, IC-3.1 – IC-3.3, IC-4.2 and IC-4.3). Here you can specify the criteria you will use

17
to assess every learning opportunity. Your criteria should be transparent to the student at the onset
of the course—often in the form of a rubric.

4.2.2 Qualification for extra time

Should you qualify for extra time for the writing of tests and examinations, you must make sure that you
have made the necessary arrangements with Faculty Administration. You must also make sure that the
lecturers are made aware of this arrangement. However, irrespective of what the letter from UP says, it
was decided based on SAICA past practice that the extra time will be limited to 10 minutes per hour of
writing time (no extra reading time will be awarded). (Refer Competency Framework, specifically
pervasive skills, with specific reference to IA-3, IB-1 and IC-5.3)

4.2.3 Writing of tests and exams

Students must carry their student cards with them during tests (CEV-tests and year tests) and exams to
allow certain checks to be performed by lecturers. Cellular telephones must be switched of at all times.

Answer books must contain at least the student’s student number, otherwise the particular test will not
be marked. (Refer Competency Framework, specifically pervasive skills, with specific reference to IA-
4)

If you do not answer a particular question in a test and you were required to answer the specific question
in a separate question book, then you must hand in the empty book with your details completed on the
cover thereof. YOU MUST ENSURE THAT ALL THE ANSWER BOOKS HAVE BEEN HANDED IN BEFORE YOU
LEAVE THE TEST VENUE. IF ANY OF THE ANSWER BOOKS ARE NOT HANDED IN, YOU WILL GET ZERO
FOR THAT QUESTION. (Refer Competency Framework, specifically pervasive skills, with specific
reference to IA-3, IA-4 and IB-1)

Students are once again reminded of the exam/test instructions as set out in the 2022 university guide.
These rules will be strictly enforced by the lecturers of the Department. (Refer Competency Framework,
specifically pervasive skills, with specific reference to IB-1)

All CEV-tests, year tests and exams are open book papers and the students are allowed to bring in the
SAICA Handbook suite. No other textbooks will be allowed.

Please note that the open book policy of SAICA for the Initial Test of Competence (ITC) is as follows and
that the same policy applies to the Department of Accounting:

“Candidates will only be allowed to highlight, underline, side-line and flag in the permitted texts.
Writing on flags is permitted for reference and cross-referencing purposes only, that is, writing may
only refer to the name or number of the relevant discipline standard, statement or section in the
legislation. (Students are therefore NOT allowed to write in their text books. Students may therefore
NOT write formulas, definitions or anything except the references or cross-references on flags.)

Candidates may not have in their possession any loose papers (whether affixed to the permitted texts
or not).

Only properly bound standard publishers’ editions will be permitted. Photocopies, printed copies of
electronic versions, loose sections or isolated pages of texts are prohibited.”

(Refer Competency Framework, specifically pervasive skills, with specific reference to IA-3 and IB-7)

18
4.2.4 Pocket calculators and cellular telephones

In order to work as effectively as possible, you will be expected to use a FINANCIAL pocket calculator.
Please note the examination rules of SAICA regarding calculators for the Initial Test of Competence (ITC)
are as follows:

“Candidates may only use silent, electronic, battery-driven pocket calculators subject to the following
conditions:
(a) Calculators must be cordless, and may not have print-out facilities;
(b) Calculators that have a full set of alpha characters / keys are prohibited (i.e. NO programmable
calculators are allowed);
(c) Any financial calculator (that does not have a full set of alpha characters / keys) will be allowed
as the following tables will not be provided in any of the SAICA Qualifying Examinations from
January 2011:
• Tables of present value factors for various discount rates for varying periods; and
• Tables of future value factors for various interest rates for varying periods;
(d) The calculator function on electronic media, including but not limited to, cell phones, smart
phones, tablets or any other similar electronic device may not be used; and
(e) Candidates may not share a calculator with another candidate in the examination room.

SAICA may set questions that require the calculation of internal or implicit rates of return as well as
time value of money calculations. Therefore, the use of financial calculators is recommended.

Present value tables will NOT be provided, which means that you need a calculator capable of
calculating these values.

In any question where a calculator is used, all ancillary workings and interim calculations must be
shown as part of the answer. If workings are shown, the examiner is able to identify whether a mistake
is the result of an arithmetical error or an error of principle and, in the case of the former, can give
credit for the candidate's knowledge of the principles. It is emphasised that candidates must show the
steps they have followed to arrive at a conclusion.”

The same rules apply to the Department of Accounting. (Refer Competency Framework, specifically
pervasive skills on pages 10 - 11, with specific reference to IA-3)

Defective and inadequate pocket calculators, as well as calculators left at home, will unfortunately not be
accepted as reasons for writing special exams or for adjusting marks. (Refer Competency Framework,
specifically pervasive skills, with specific reference to IB-1). Calculators may not be shared during CEV-
tests, year tests and exams. The calculator function on any cellular telephones may not be used during
tests or exams.

No cellular telephones may be switched on during a lecture, as this is disruptive and inconsiderate
behaviour. (Refer Competency Framework, specifically pervasive skills, with specific reference to IB-
6). Cellular telephones must also be switched off (i.e. not silent mode) during any tests or examinations.

19
4.3 Assessment policy

4.3.1 Admission to examination and pass requirements

In order to qualify to write the Examination, a sub-minimum year mark of 40% is required. (Refer
Competency Framework, specifically pervasive skills, with specific reference to IA-4 and IB-1)

It is your responsibility to ensure that your year mark was correctly calculated. (Refer Competency
Framework, specifically pervasive skills, with specific reference to IC-2.2, IC-2.3 and IC-3.1)

The final mark for the module FRK 705 will usually consist of the following:
- 50% of the year mark; and
- 50% of the exam mark.

The above is however subjected to the discretion of the Department of Accounting and may therefore
change.

The progress (year) mark will be used to determine your eligibility to write the examination. The
progress mark may count up to a maximum of 50% towards your final mark. This principle may be
adjusted in the event of unforeseen circumstances outside the control of the university. The exact
formulas for the calculation of the progress and final marks will be communicated.

4.3.2 Re-examination and special examinations

Re-examinations are granted to students who have achieved a final mark of 45% - 49%. The granting
of re-examinations to students will only be considered if the final mark is between 45% and 49%
provided that a sub-minimum of 40% was achieved in the examination. The re-examination is written
7 to 14 days after the release of the year-end exam results. The re-examinations will finish at the latest
on 30 November 2022. The re-examination for FRK is 120 marks. The year mark falls away and
students need at least 50% in this examination in order to pass.

Students that were absent for the examination with an appropriate excuse, shall write the re-
examination as a sick-examination. There is therefore no further re-examination for such students
(i.e. there is no re-examination for a sick-examination).

Lecturers have the authority to call in students after the normal exam for supplementary exams on a
section of the work. The granting of supplementary exams are at the discretion of a departmental
supplementary examination committee. You can therefore not negotiate this with the lecturer.

There are no special examinations for FRK 705.

20
4.3.3 Perusal of examination, re-examination and special examination scripts

Perusal of the examination, re-examination and special examination scripts means that a student is
able to exercise their right to verify the result of the examination and that in order to do so; access to
the suggested solution is given. (Refer Competency Framework, specifically pervasive skills, with
specific reference to IC-2.3)

Lecturers will not debate the allocation of marks with the student but will be prepared to correct any
possible adding mistakes. No discussion of the examination question paper and/or suggested solution
is permitted. (Refer Competency Framework, specifically pervasive skills, with specific reference to IB-
6)

Perusal of examination scripts is available to all students.

The following procedure for perusal of the examination script will be followed: The student requesting
inspection of their script must produce a valid student card before their script is provided to them
together with a suggested solution. No stationary will be allowed with the student except for a pocket
calculator. On completion of the inspection of the script, both the script and suggested solution must
be returned to the lecturer.

Perusal of examination scripts and the re-mark of examination books will be permitted subject to the
University’s rules and regulations. Should a student require a re-mark, the required form and payment
of the fee must be made at Faculty Administration before any such re-mark will be done.

Due to the small number of students that normally qualify to write the special examination a formal
perusal opportunity is not scheduled for the special examination. Any student affected should contact
the subject responsible lecturer to arrange for perusal. (Refer Competency Framework, specifically
pervasive skills, with specific reference to IB-1)

4.4 Plagiarism
Plagiarism is a serious form of academic misconduct. It involves both appropriating someone else’s
work and passing it off as one’s own work afterwards. Thus, you commit plagiarism when you present
someone else's written or creative work (words, images, ideas, opinions, discoveries, artwork, music,
recordings, computer-generated work, etc.) as your own. Only hand in your own original work.
Indicate precisely and accurately when you have used information provided by someone else.
Referencing must be done in accordance with a recognised system. Indicate whether you have
downloaded information from the Internet. For more details, visit the library’s website:
http://www.library.up.ac.za/plagiarism/index.htm.

4.5 Resubmission of test/assignment scripts

If there are any queries regarding the marks awarded to a script, the full script (all the answer books),
together with the prescribed form (see Annexure 1) must be submitted to the lecturer or designated
person (FRK705 Academic Trainee) concerned within three working days of the scripts being returned
to the student during lectures. No late submissions will be considered under any circumstances and
this is not negotiable. (Refer to Competency Framework, specifically pervasive skills, with specific
reference to 1B-1)

21
Examples of the application of the three working day rule (to illustrate the principle), are as follows:

When returned to learner By when to be submitted for re-mark

Test/assignment returned on Monday 15:30 on Thursday
Test/assignment returned on Tuesday 15:30 on Friday
Test/assignment returned on Thursday 15:30 on Tuesday of following week

If a public holiday should fall on a day following the return of the test/assignment, then this rule would
work as follows:

When returned to learner By when to be submitted for re-mark

Test/assignment returned on Monday and 15:30 on Friday
public holiday falls on the
Tuesday/Wednesday/Thursday
Test/assignment returned on Tuesday and 15:30 on Monday
public holiday falls on
Wednesday/Thursday/Friday
Test/assignment returned on Thursday and 15:30 on Wednesday of following week
public holiday falls on Friday or
Monday/Tuesday of following week

Tests submitted for re-evaluation will be considered in their entirety and students must therefore also
check their papers as a whole, before enquiring about their marks as compensating marks may be lost
and gained. The detailed mark memorandum must be used for this purpose. The lecturers and
academic assistants will not discuss the marking of your test with you prior to your handing the test
in for re-mark.

In compliance with the EMS Conduct rules, we expect of you that you will comply with the following
procedure: The prescribed form (refer ANNEXURE 1 below) must be properly completed in all
respects. If this is not done, the application for re-submission will be invalid and will not be considered.
We will not contact you to correct this so that the remark can be done – this is your responsibility and
is not negotiable. The two persons signing this form as confirmation that the query is valid must ensure
that they have properly applied their minds to the issues raised and not sign the form blindly, as they
will be held responsible, together with the person that has completed the form, for any invalid queries.
Any invalid queries will be dealt with in a firm manner. Refer Annexure 1 below for the penalty related
to this. (Refer Competency Framework, specifically pervasive skills, with specific reference to IA-3, IA-
4, IA-5, IC-2.3 and IC-5.3))

Students should retain all year tests, CEV-tests and homework assignments received back until the end
of the academic year. This will serve as evidence regarding queries in connection with marks awarded and
with which you differ. We will unfortunately not be able to help you unless such evidence can be
submitted. (Refer Competency Framework, specifically pervasive skills, with specific reference to IA-
3, IA-4 and 1B-1)

22
ANNEXURE 1

DEPARTMENT OF ACCOUNTING
RE-SUBMISSION OF SCRIPT
Form must be properly completed in ALL respects BEFORE it is handed in (refer 4.5)
Description and Date of test:
Subject: Financial Accounting FRK 705
Initials and surname: Student no:

I hereby request that my FRK 705 answer scripts be re-evaluated:

Total mark for the
Adding problem
Question Other queries question (after
(indicate My total
number consideration by the
Yes/No) (indicate Yes/No)
markers)

TOTAL

I hereby declare the following:

 I am aware that my paper will be considered in its entirety.
 My complete script with all of its questions, are attached.
 The question number, the total mark per question awarded before reconsideration, as well as
my own adding-up per question (only if applicable) is correctly filled in above.
 Queries are not just marked with an asterisk or a question mark, but the query is clearly stated
in sentence format in pencil only and the penciled-in information is highlighted.
 My answer paper has also been scrutinized by the following two fellow students currently
registered for FRK 705, and they agree with the queries raised. Should the queries raised be
invalid according to the relevant staff member(s), the 2 verifiers and I will be penalized by the
deduction of 2 percentage points.

______________________ ________________________
Signature Date
Initials and surname of
Student no.: Signature:
verifiers (clearly print):

23
4.6 Excuses / Apologies
Only written excuses on the prescribed form (see Annexure 2) will be accepted. Students are
requested to be reasonable when offering an excuse, as unreasonable behaviour will be severely dealt
with.

In those situations where a certificate from a medical practitioner is the supporting documentation that
is submitted with the prescribed form, the following important matters are drawn to your attention:
- Only original certificates from medical practitioners will be accepted.
- The certificate from the medical practitioner must be dated on or before the date of the test.
Certificates dated after this date will not be accepted.
- The certificate must clearly specify the period for which you are booked off and must clearly indicate
that you have been booked off.
- Any certificate from a medical practitioner stating “I have been informed that....” will not be
accepted or considered.
- The validity of the certificate from the medical practitioner will be verified directly with that
practitioner.

In those situations where a certificate from a medical practitioner is not the supporting documentation,
a letter together with other original, suitable and verifiable documentation must be attached to the
prescribed form. Other circumstances will be considered only in exceptional cases following consultation
by the Head of Department: Accounting with the lecturer concerned.

In terms of University regulations, excuses must be submitted within three (3) working days after the
date of the test concerned. The prescribed form and the supporting documentation must be submitted
at the One-Stop Service in the Department of Accounting (EMS 2-75) within three (3) working days (which
includes the university recess period) of the test date. Should the One-Stop Service not be manned, you
must ensure that the prescribed form and the appropriate supporting documentation are handed in at
the office of the Head of Department: Accounting within the said three (3) working days or e-mailed to
Mrs Tomes ([email protected]). When the prescribed form and supporting documentation are
handed in, you must ensure that you receive an acknowledgement of receipt of the said documents and
ensure that this receipt clearly indicates to whom the documentation was handed.

Students submitting the supporting documentation without the completed prescribed form or the
prescribed form without the supporting documentation, disqualify themselves immediately with
regard to the excuse. It is your responsibility to ensure that procedures are followed.

(Refer Competency Framework, specifically pervasive skills, with specific reference to IA-3, IA-8 and
IB-1)

24
ANNEXURE 2

DEPARTMENT OF ACCOUNTING
APPLICATION TO BE EXCUSED
Form must be properly completed in ALL respects before it is handed in

Subject: FINANCIAL ACCOUNTING – FRK 705

Initials and surname: Student no:

I hereby request that I be excused from the following academic commitment:

Year test no.: Date:
CEV-test no.: Date:
I have submitted ...... excuses to date.

The original of my medical certificate or other supporting documentation in support of my application

to be excused is attached.

I confirm that I have read and understood the matters relating to the submission of
excuses/apologies as contained in the Learner’s Guide under 4.6.

I declare that this is a bona fide application and that the certificate and/or letter attached is true.

______________________ ______________________
Signature Date

If you cannot use a photocopy of this example, you may write a letter that contains the same information.

25
5 Support services
Please note that details on the EMS Student Support Services are provided in 5.4 and 5.5 below.
For UP support, please download a QR code reader on your cellular phone. To download a QR code
reader open your mobile app store (App Store, Google Play or Windows Marketplace) and search for
QR code readers.

5.1 Safety in the evening and emergencies

 For any safety or emergency related matters, eg if you need a security officer to accompany
you from your residence to campus, phone the Operational Management Centre (details at
the back of your student card).
 The 24-hour, multi-disciplinary UP Crisis Line offers professional and confidential support to
victims of crime in times of trauma. For assistance and immediate action, phone the UP Crisis
Line on: 0800 00 64 28.
 Hatfield residence students: From 18:00 till 06:00 security officers are available to escort you
(on foot) to and from your residence or campus anywhere east of the Hatfield Campus through
to the Hillcrest Campus.

5.2 E-learning support

 Report a problem you experience to the Student Help Desk on your campus.
 Visit the open labs in the Informatorium Building or IT labs on your campus to report problems
at the offices of the Student Help Desk.
 Approach the assistants at the help desks—campus specific (for example: adjacent to the
Student Computer Laboratories in IT Building, NW2, CBT or Aldoel Building IT labs, etc).
 Call 012 420 3837.
 Email [email protected]

5.3 Other support services:

 Think carefully before
dropping modules (after the
closing date for amendments
or cancellation of modules).
FLY@UP: www.up.ac.za/fly@up
 Make responsible choices
The Finish
with your time and work
Line is Yours email: [email protected]
consistently.
 Aim for a good semester
mark. Don’t rely on the
examination to pass.
Academic support for students
with learning disabilities:
 Assistive technological https://www.up.ac.za/disability-
services unit
 Facilitation of test and
Disability
examination 012 420 2064
Unit
accommodations email: [email protected]
 Test and exam concession
applications
 Accessible study venues and
a computer lab

26
  Referrals for recommended
textbooks in electronic
format

Student
Provides counselling and
Counselling 012 420 2333
therapeutic support to students
Unit

Student
Promotes and assists students 012 420 5233
Health
with health and wellness 012 420 3423
Services

Provides support for UP students

The Careers [email protected]
and graduates as they prepare
Office 012 420 2315
for their careers

24-hour Operational 012 420-2310

Department Management Centre 012 420-2760
of Security
Services 24-hour Operational Manager 083 654 0476
Crisis Line 0800 006 428
Enquiries concerning studies,
Department 012 420 2371/4001
accommodation, food, funds,
of Student Roosmaryn Building, Hatfield
social activities and personal
Affairs campus
problems

Centre for
Sexualities, Identifies and provides training
012 420 4391
AIDS and of student peer counsellors
Gender

Fees and http://www.up.ac.za/enquiry

012 420 3111
funding www.up.ac.za/fees-and-funding

012 420 3051

IT Helpdesk For student IT related queries [email protected]

27
5.4 EMS student support by Faculty Student Advisors *
Mondays to Fridays, 07h30 to 16h00

The services offered by the Faculty Student Advisors (FSAs) include individual consultation and/or
group workshops dealing with:

 Adjustment to university life

 Academic support - Goal setting & motivation, Time Management, Study methods, Test/Exam
preparation, Stress management
 Career exploration
 UPO 107 module queries – For 1st year students only
 EMS Y2 Plus queries – For 2nd & 3rd year students only
 Other services:
 Phafoga early warning system – For 1st years
 Mamelodi / Hatfield student orientation – For 2nd years completing their first year in
Mamelodi in the immediately preceding year
 First generation mentorship – For 1st years

Please either phone 012 420 6992 for an appointment or visit the counter in Room 1-13 in the EMS
Faculty Administration (at EMS Building Entrance 1) to make an appointment.

*Services are free of charge to all EMS registered students

FSAs at your service

Mr Danny Ramollo Ms Zinhle Sibiya Mr Nhlanhla Maphetu
EMS Administration Building, EMS Administration EMS Administration Building,
Room 1-13.1 Building, Room 1-13.2 Room 1-13

E-mail: E-mail: E-mail:

[email protected] [email protected] [email protected]
Tel: (012) 420 6743 Tel: (012) 420 3322 Tel: (012) 420 6992

28
5.5 Alphabetical list of degrees/diplomas/fields of study and faculty
administrators responsible for those degrees
BCom
Accounting Sciences (undergraduate & postgraduate diploma)
Ms Badugela Room 1-5.8
012 420 2289 [email protected]

Integrated Reporting (postgraduate diploma) Mr Ngobeni Room 1-12.1

012 420 5394 [email protected]

Internal Auditing (honours) Ms Steenkamp Room 1-5.4

012 420 3347 [email protected]

International students EMS Ms Qokose Room 1-12.3

012 420 3328 [email protected]

International students EMS (Coordinator) TBA Room 1-5.3

012 420 3325 [email protected]

29
 6. Other matters
Study hints
a. Never “spot”. Unfortunately, “Murphy’s Law” most often applies here and the lecturer tests the
work that you have not spotted! You need to always maximise your mark-scoring ability and
spotting does not enable you to do this.

b. You can only pass FRK 705 if you understand the issues, concepts and principles. The workload is
just far too great to commit everything to memory.
c. In FRK 705, the lecturer explains and teaches you the basic principles and concepts but in a test,
your insight (understanding) is tested. The lecturers cannot give you examples of all possible
scenarios as these are endless. It is thus important that you understand the principles in order to
be able to apply them to any given situation. You cannot memorise scenarios either! It may take
longer initially to understand the principles but in the long-term you will save yourself a lot of time
and frustration and will always have that understanding – once gained, it cannot be taken away
from you!

d. Do not do your homework questions by applying the “Oh yes!” method, that is look at the question
and then at the answer and saying “Oh yes!” You do not receive the suggested solutions together
with tests, so it is impossible to do that in a test situation. You must work through the questions in
detail as you would under test conditions – this means that you must work under time pressure
and should not look at the answer to prompt you, until you have completed the answer. You need
to make sure that you become “test fit” and doing the majority of your homework questions under
test conditions helps you to become “test fit” and also train yourself to be able to concentrate for
the duration of your longest test. If you need to calculate and amount and cannot, assume an
amount and carry on with the rest of the answer. Only once you have completed your answer,
should you look at the suggested solution. Your answer does not need to look exactly the same as
the suggested solution – it is after all a “suggested” solution.

e. It does not help to work out solutions to all the questions if you do not understand the principles.
You should rather make sure that you understand the principles first and that you know what you
should memorize such as disclosure requirements for accounting, before you do the questions so
that you can then confirm your understanding by applying these to answering the questions.

f. Stay up to date!!! Do your homework questions immediately and timeously and see the
lecturer/tutor immediately if you have a problem. You will receive a significant amount of
homework to do during the semester/year. If you leave this until you are about to write a test, it
will not be possible to work through homework questions. Once you have done a question, jot
down the principles illustrated in the question as well as the catches and things you got wrong at
the top of your completed answer sheet in a different colour pen. This is for future reference and
for you to quickly check if you still know the principles/catches/weak spots contained in the
question when you do revision. If you are on top of the items mentioned, you do not have to do
the question again, if not – look again. If you do your homework regularly, the amount of work you
need to do before a test will be reduced and you will be able to focus on topics that you are less
comfortable with. In this way, you will be able to revise effectively and efficiently.

g. Make sure that you know and understand the following for each topic:
 theory (scope; rules applicable to recognition, measurement, classification)
 journal entries (how the transaction is accounted for); and
 disclosure and presentation (per the Accounting Standard).

30
6.1 Examples of the format of letters, emails, memoranda and reports to
clients
INTRODUCTION

With the implementation of SAICA’s new Competency Framework, the presentation of

answers to test and exam questions in specific formats are becoming extremely important
and in future several marks will be awarded to this.

(Refer Competency Framework, specifically pervasive skills, with specific reference to IC-4.2)

To assist you, the formats that may be required as part of the answer to a question, are
illustrated in this document. The document is aimed at providing guidance on the approach
that should be followed to address the format requirements of answers to test and exam
questions.

1. Business letter / Letter to a client

Consulting Firm
PO Box 123
Address of issuing firm Johannesburg
2000
12 March 20…
Mr / Ms XXX
(Managing Director / Financial Director) Name and title
XYZ Ltd
PO Box 456
Johannesburg Address of firm (recipient)
2000

Dear Sir / Miss / Madam Form of address

INVENTORY COUNT INQUIRY Descriptive heading

In relation to your inquiry on the procedures that should be followed at your annual inventory
count, find attached in Appendix A the recommendations of our firm.
Should you have any further inquiries, please contact us on 0XX XXX XXXX.

Yours faithfully
Closure and signature
C.O.N Sultant
[YOU MAY NEVER PROVIDE ANY RECOGNISED NAME HERE]

Appendix A
….
Set out your answer to address the “required” part of the question here. By referring to an
appendix, you prevent yourself from forgetting to complete the letter and thereby losing
unnecessary marks.

31
2. Memorandum
To: F.I.N. Director
From: C.O.N. Sultant (Never any recognised name) Details of parties
Date: 18 April 20…
Subject: Inventory count inquiry Descriptive title

Dear Sir / Miss / Madam Form of address

In relation to your inquiry on the procedures that should be followed at your annual inventory
count, find attached in Appendix A the recommendations of our firm.

Should you have any further inquiries, please contact us on 0XX XXX XXXX.

Yours faithfully

C.O.N. Sultant
[YOU MAY NEVER PROVIDE ANY RECOGNISED NAME HERE]

Appendix A

….

Set out your answer to address the “required” part of the question here. By referring to an
appendix, you prevent yourself from forgetting to complete the memorandum and thereby
losing unnecessary marks.

32
3. Report
Report in relation to inventory count procedures of Title and content
XYZ Ltd for the year ended 31 December 20… Period covered

Consulting Firm
Author’s details PO Box 123
(Never any recognised name) Johannesburg
2000

Date of report 26 January 20…

The Directors
XYZ Ltd Addressee of report

Dear Sir / Miss / Madam Form of address

In relation to your inquiry about the nature of the procedures followed at your inventory count
during the year ended 31 December 20…, please find attached in Appendix A to this report
the findings of our firm.

Should you have any further inquiries, please contact us on 0XX XXX XXXX.

Yours faithfully

C.O.N. Sultant Closure and signature

[YOU MAY NEVER PROVIDE ANY RECOGNISED NAME HERE]

Appendix A

….

Set your answer to address the “required” part of the question here. A report is always
preceded by an introductory letter as illustrated above, before the report itself is presented. If
the report is a lengthy document, the report should start with a table of contents and a
summary of findings, before the detailed findings are discussed. By referring to an appendix,
you prevent yourself from forgetting to complete the report and thereby losing unnecessary
marks.

33
4. E-mail
From: Auditor (never any recognised name)
To: F.I.N. Director Details of parties
CC: Partner in charge
Date: Date on which email is generated
Subject: Inventory count inquiry Descriptive title

Dear Sir / Miss / Madam Form of address

In relation to your inquiry on the procedures that should be followed at your annual inventory
count, find attached in Appendix A the recommendations of our firm.

Should you have any further inquiries, please contact us on 0XX XXX XXXX.

Yours faithfully

Auditor
[YOU MAY NEVER PROVIDE ANY RECOGNISED NAME HERE]

Appendix A

….

Set out your answer to address the “required” part of the question here. By referring to an
appendix, you prevent yourself from forgetting to complete the e-mail and thereby losing
unnecessary marks.

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7. Rules of conduct for EMS students
Students in the EMS Faculty are likely move into the business world once they have completed their
studies at the University of Pretoria. As part of delivering well-rounded students to the job market, it
is important that UP students refine certain attributes that are deemed to be part of the make-up of
any successful business person. Where feasible, a number of these attributes need to be inculcated
by staff members in the departments in the EMS Faculty, by consistently applying the same
administrative and other rules when dealing with students. As these rules of conduct are deemed to
form part of leaners’ guides even though they may be handed out separately, it is assumed that all
students are aware of these and ignorance will thus not be accepted as an excuse.

CONDUCT RULES (GA = Graduate attribute expected of students in the EMS Faculty per S4691/17)
1. Professional conduct and manners are expected when interacting with your lecturers in
person, by e-mail or by telephone. GA: Communicate constructively and sensitively with a
range of people and communities in diverse social, cultural, geographical and workplace
contexts using appropriate language (oral, written and listening) as well as other skills
2. Professional conduct and ethical conduct are expected when liaising with outside stakeholders
related to your academic programme. GA: Have a sense of social responsibility , respect human
rights and dignity and exhibit informed awareness and behave professionally, ethically and
with integrity
3. Please respect the consulting hours of lecturers and the time of your fellow students when
consulting with lecturers on a one-on-one basis or in class. GA: Demonstrate inter-personal
skills by working collaboratively and co-operatively in several contexts and function
autonomously / independently and confidently as individuals demonstrating initiative in
overcoming life and work challenges and take responsibility for their own decisions and
development
4. All correspondence (e-mail or otherwise) with the HODs and lecturers, must be done in an
appropriate format and tone. If not, the correspondence will be returned unanswered marked
“format” or “tone”. Queries will thus not be attended to, unless the format and/or tone of the
correspondence are at an acceptable professional standard. For examples of the appropriate
format, refer to the formats of correspondence included in this document. GA: Communicate
constructively and sensitively with a range of people and communities in diverse social, cultural,
geographical and workplace contexts using appropriate language (oral, written and listening)
as well as other skills
5. Students shall not be late for class, unless there is a valid reason for their being late. Being late
for a lecture indicates a lack of respect for the lecturer and fellow students. In addition,
students who have to leave a lecture period before the end of the lecture should advise the
relevant lecturer before the lecture commences that they will be leaving early.
GA: Function autonomously / independently and confidently as individuals demonstrating
initiative in overcoming life and work challenges and take responsibility for their own decisions
and development
6. Students’ cell phones should be switched off and out of sight during lectures and tutor sessions,
unless these are used as part of the blended learning interventions. GA: Have a sense of social
responsibility , respect human rights and dignity and exhibit informed awareness and behave
professionally, ethically and with integrity and interact constructively and create opportunities
for shared learning
7. Students are discouraged from misusing the procedures associated with sick notes.
Nevertheless, when appropriate, they are expected to hand in a sick note application form
together with the required supporting documentation AT EACH DEPARTMENT. The associated
application form must be filled out in its entirety and if not, sick notes will not be accepted and

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 a zero mark will be awarded for the relevant test or assignment. GA: Have a sense of social
responsibility , respect human rights and dignity and exhibit informed awareness and behave
professionally, ethically and with integrity
8. Sick note application forms and associated documentation must be handed in within three
working days from the date of the test that was missed. Public holidays, Saturdays, Sundays
and official university recess days during a semester are not counted as working days. Late
submissions will not be accepted and a zero mark will be awarded for the relevant test.
GA: Function autonomously / independently and confidently as individuals demonstrating
initiative in overcoming life and work challenges and take responsibility for their own decisions
and development
9. To counter unethical behaviour, sick notes received will be validated by confirming their
validity with the issuing medical practitioner. If students are identified as having submitted
fraudulent sick notes, they will be handed over to the university authorities for disciplinary
action and this could lead to expulsion. GA: Have a sense of social responsibility , respect
human rights and dignity and exhibit informed awareness and behave professionally, ethically
and with integrity
10. Students are expected to consider the resubmission of tests for additional marks carefully and
are expected to fill out the associated forms in their entirety and hand these in, accompanied
by the relevant test. Questions/answer books will be remarked in their entirety when handed
in and students could consequently lose marks previously awarded, when the entire
question/answer book is remarked. GA: Function autonomously / independently and
confidently as individuals demonstrating initiative in overcoming life and work challenges and
take responsibility for their own decisions and development
11. Fraudulent amendments to tests and examinations will not be tolerated and students guilty of
this will be handed over to the university authorities for disciplinary action and this could lead
to expulsion or suspension of credits for a specific module. GA: Function autonomously /
independently and confidently as individuals demonstrating initiative in overcoming life and
work challenges and take responsibility for their own decisions and development and have a
sense of social responsibility , respect human rights and dignity and exhibit informed awareness
and behave professionally, ethically and with integrity
12. All tests handed in for remarking must be handed in within three working days of the date on
which the tests were handed back in class and must be accompanied by the associated form.
Public holidays, Saturdays, Sundays and official university recess days during a semester are
not counted as working days. Applications for a remark will not be considered if handed in
after the deadline specified by the lecturers. GA: : Function autonomously / independently and
confidently as individuals demonstrating initiative in overcoming life and work challenges and
take responsibility for their own decisions and development
13. All assignments must be handed in on time. If not, assignments will not be marked and students
will receive a zero mark for assignments that were handed in late. GA: : Function autonomously
/ independently and confidently as individuals demonstrating initiative in overcoming life and
work challenges and take responsibility for their own decisions and development

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