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 THAT HAS PASSED THE END DATE: 

Illustrate and understand the basic layout of financial statements 
SAQA US ID UNIT STANDARD TITLE
116083  Illustrate and understand the basic layout of financial statements 
ORIGINATOR
SGB Primary Agriculture 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 01 - Agriculture and Nature Conservation Primary Agriculture 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 2  NQF Level 02  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 
A learner achieving this unit standard will be able to define and illustrate the gross margin statement, income statement, balance sheet and cash flow budget as well as the different cost aspects that one can find in a business.

In addition learners will be well positioned to extend their learning and practice into other areas of costing and basic financial statements or, to strive towards professional standards and practices at higher levels.

Competent learners will know if the business is making a profit or a loss, and how to generate basic but effective managerial information from it. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is expected of the learner attempting this unit standard to demonstrate competence against the following unit standard or equivalent:
  • NQF 1: Identify the need for capital and understand the need for the recording of the income and different costs in an agri-business. 
    		•

    UNIT STANDARD RANGE 
    Whilst range statements have been defined generically to include as wide a set of alternatives as possible, all range statements should be interpreted within the specific context of application.

    Range statements are neither comprehensive nor necessarily appropriate to all contexts. Alternatives must however be comparable in scope and complexity. These are only as a general guide to scope and complexity of what is required. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Define and understand the gross margin statement and distinguish between direct and indirect costs, as well as fixed and variable costs. 
    OUTCOME RANGE 
    All direct costs that forms part of the production costs not limited to material, labour, overheads, stock and production costs, direct and indirect cost. All income generated by the specific enterprise should be identified and quantified. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The ability is demonstrated to explain and define fixed and variable costs. 

    ASSESSMENT CRITERION 2 
    The ability is demonstrated to identify and quantify the fixed and variable costs. 

    ASSESSMENT CRITERION 3 
    The ability is demonstrated to identify and explain the various income sources. 

    ASSESSMENT CRITERION 4 
    The ability is demonstrated to list and quantify the various income sources. 

    ASSESSMENT CRITERION 5 
    Material cost, labour cost and overhead costs are defined and explained. 

    ASSESSMENT CRITERION 6 
    All possible material costs, labour, direct and indirect costs for a specific agri-business are listed. 

    ASSESSMENT CRITERION 7 
    An understanding of the gross margin concept and its application within agriculture is demonstrated. 

    ASSESSMENT CRITERION 8 
    The ability to complete a template, show and calculate the production costs and gross margin is demonstrated. 

    SPECIFIC OUTCOME 2 
    Define and understand the income statement. 
    OUTCOME RANGE 
    The income statement refers to income, production costs, net farming income, foreign factor costs, farming profit/loss. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An ability is demonstrated to understand, distinguish between and quantify all possible fixed and variable costs such as marketing, personnel and admin costs, as well as foreign factors costs. 

    ASSESSMENT CRITERION 2 
    The ability to provide inputs to an income statement, which reflects production costs, income, foreign cost and profits or losses, is demonstrated. 

    ASSESSMENT CRITERION 3 
    The ability to generate managerial information from the income statement is demonstrated. 

    SPECIFIC OUTCOME 3 
    Define and understand the balance sheet. 
    OUTCOME RANGE 
    Short term, medium term and long-term assets and liabilities and owner's equity. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An ability is demonstrated to identify and quantify the components of short-term assets. 

    ASSESSMENT CRITERION 2 
    An ability is demonstrated to identify and quantify the components of short-term liabilities. 

    ASSESSMENT CRITERION 3 
    An ability is demonstrated to identify and quantify the components of medium term assets. 

    ASSESSMENT CRITERION 4 
    An ability is demonstrated to identify and quantify the components of medium term liabilities. 

    ASSESSMENT CRITERION 5 
    An ability is demonstrated to identify and quantify the components of long-term assets. 

    ASSESSMENT CRITERION 6 
    An ability is demonstrated to identify and quantify the components of long-term liabilities. 

    ASSESSMENT CRITERION 7 
    An understanding of owner's equity and what it consists of is demonstrated. 

    ASSESSMENT CRITERION 8 
    The ability to complete a balance sheet when the template is given is demonstrated. 

    SPECIFIC OUTCOME 4 
    Define and understand the structure of a cash-flow budget and statement. 
    OUTCOME RANGE 
    This includes cash, credit, income, other income, costs, etc. over a period of twelve months. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The ability to source various financial data for the cash-flow budget and statement is demonstrated. 

    ASSESSMENT CRITERION 2 
    The ability to fill in the template of a cash flow budget and/or statement is demonstrated. 

    ASSESSMENT CRITERION 3 
    An understanding of the need for a twelve-month budget is demonstrated. 

    ASSESSMENT CRITERION 4 
    An understanding of the various components of a cash flow budget and statement is demonstrated. 

    ASSESSMENT CRITERION 5 
    The ability to transfer the month-end balance to the next month's opening balance is demonstrated. 

    ASSESSMENT CRITERION 6 
    An understanding of the influence interest rates on the budget and statement is demonstrated. 

    ASSESSMENT CRITERION 7 
    The ability to interpret basic results of the budget and statement is demonstrated. 

    ASSESSMENT CRITERION 8 
    An understanding of how the cash-flow budget/statement links up with the income statement is demonstrated. 

    ASSESSMENT CRITERION 9 
    An understanding and ability to use the cash-flow budget in a cash-flow statement is demonstrated. 

    SPECIFIC OUTCOME 5 
    Demonstrate an understanding of the legal responsibilities of an agri-business owner. 
    OUTCOME RANGE 
    This includes but is not limited to tax, VAT, PAYE, workman's compensation, RSC, and skills levy payments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An understanding of the legal environment in which the agribusiness operate is demonstrated. 

    ASSESSMENT CRITERION 2 
    An understanding of what income tax is and why it should be incorporated within the planning process is demonstrated. 

    ASSESSMENT CRITERION 3 
    An understanding of what value-added tax is and why it should be incorporated within the planning process is demonstrated. 

    ASSESSMENT CRITERION 4 
    An understanding of what workman's compensation is and why it should be incorporated within the planning process is demonstrated. 

    ASSESSMENT CRITERION 5 
    An understanding of what skills levy payments is and why it should be incorporated within the planning process is demonstrated. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    The assessment of qualifying learners against this standard should meet the requirements of established assessment principles.

    It will be necessary to develop assessment activities and tools, which are appropriate to the contexts in which the qualifying learners are working. These activities and tools may include an appropriate combination of self-assessment and peer assessment, formative and summative assessment, portfolios and observations etc.

    The assessment should ensure that all the specific outcomes; critical cross-field outcomes and essential embedded knowledge are assessed.

    The specific outcomes must be assessed through observation of performance. Supporting evidence should be used to prove competence of specific outcomes only when they are not clearly seen in the actual performance.

    Essential embedded knowledge must be assessed in its own right, through oral or written evidence and cannot be assessed only by being observed.

    The specific outcomes and essential embedded knowledge must be assessed in relation to each other. If a qualifying learner is able to explain the essential embedded knowledge but is unable to perform the specific outcomes, they should not be assessed as competent. Similarly, if a qualifying learner is able to perform the specific outcomes but is unable to explain or justify their performance in terms of the essential embedded knowledge, then they should not be assessed as competent.

    Evidence of the specified critical cross-field outcomes should be found both in performance and in the essential embedded knowledge.

    Performance of specific outcomes must actively affirm target groups of qualifying learners, not unfairly discriminate against them. Qualifying learners should be able to justify their performance in terms of these values.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The person is able to demonstrate a basic knowledge of:
  • Gross margin analysis.
  • Production costs.
  • Income statement.
  • Balance sheet.
  • Cash flow budget and statement.
  • Statutory/legal requirements, rules and principles. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Problem solving relates to specific outcomes:
  • Define and understand the gross margin statement and distinguish between direct and indirect costs, as well as fixed and variable costs.
  • Define and understand the income statement.
  • Define and understand the structure of a cash-flow budget and statement. 
    		•

    UNIT STANDARD CCFO ORGANISING 
    Self-organisation and management relates to all specific outcomes. 

    UNIT STANDARD CCFO COLLECTING 
    Information evaluation relates to all specific outcomes. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communication relates to all specific outcomes. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology relates to all specific outcomes. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Inter-relatedness of systems relates to all specific outcomes. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Self-development relates to all specific outcomes. 

    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
    Core  48976   National Certificate: Animal Production  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  AgriSETA 
    Core  48977   National Certificate: Mixed Farming Systems  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  AgriSETA 
    Core  48975   National Certificate: Plant Production  Level 2  NQF Level 02  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  AgriSETA 


    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. Agrioperations Hub Pty Ltd 
    2. Balemi Consulting Pty Ltd 
    3. Boikgantsho Consulting & Events 
    4. Bumunhu Services Providers Cc 
    5. Cedara College of Agriculture 
    6. Dihwai Food Cultural and Agricultural Services 
    7. ELSENBURG AGRICULTURAL COLLEGE 
    8. Escay Catering and other Services 
    9. Ghoenas Kraal Opleiding Sentrum 
    10. Heedmorine Training 
    11. Impact Plus Training Consultants 
    12. KayDee Project Management Cc 
    13. Kgopane Trading Enterprise 
    14. Kimbali Holdings 
    15. KMK Training Services (PTY) Ltd 
    16. Knowledge For Ever 
    17. Leruo ke Matla Training and Enterprise Development Services 
    18. Madzivhandila Agricultural College 
    19. Maishamalema Development Training 
    20. Mananthatshema Skills Dev. Centre 
    21. Marang Women in Agric and Development 
    22. Mathapuso Construction and Projects 
    23. Matotomana Training & General Trading 
    24. Mobile Agri Skills Development and Training NPC 
    25. Mogaladi Business Enterprise 
    26. Montshepetsa Bosui Farming & Training Cnt 
    27. Morwa Agri-development cc 
    28. Mpontshe Training 
    29. Mthashana FET College - Vryheid Campus 
    30. Mvelo Consultant 
    31. National Institute For The Deaf - NID 
    32. New Heights 1082 Pty Ltd 
    33. Ngwato Wa Mphela Agriculture Training Services 
    34. Nophelo Training Centre 
    35. Novi General Services 
    36. Phill Skills and Development Institute 
    37. SA Agri Academy 
    38. Sekhukhune FET College - Central Office 
    39. Selipha Trading (Pty) Ltd 
    40. Setlakala Business Development 
    41. Siyafundisa I Africa 
    42. Siyasanga Training Centre 
    43. Suidwes Beleggings Eiendoms Beperk 
    44. Taletso FET College - Central Office 
    45. The Skills Development Hub (Pty) Ltd 
    46. Thuto Boshwa Skills Development Services 
    47. TM Mashwara and Projects 
    48. Tompi Seleka Agricultural College 
    49. TPN Training and Recruitment cc 
    50. Tripple R Training Provider 
    51. University of Limpopo 
    52. Vari Holdings (Pty)Ltd 
    53. Westco Agri Training 


    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.