JOIN OUR WHATSAPP GROUP. CLICK HERE
Analysis and interpretation of financial statements Grade 12 pdf
Analysis and interpretation of financial statements Grade 12 pdf On this website, we give financial statement analysis and interpretation for accounting Grade 12 students in pdf format.
This is for the Accounting Grade 12 course. The Grade 12 study content for Analysis and interpretation of financial accounts can assist you with your Accounting Subject Revisions, Tests, Exams, and Assignments.
Accounting Grade 12 focuses on performance measurement as well as the processing and communication of financial information concerning economic sectors. This discipline ensures that ethical behavior, openness, and accountability are followed. As a Grade 12 Accounting student, you will be responsible for the logical, systematic, and accurate selection and recording of financial information and transactions, as well as the compilation, analysis, interpretation, and communication of financial statements and managerial reports to interested parties.
It is vital to emphasize that interpretation is NOT a stand-alone topic; it pervades practically every other topic on the syllabus. This will also be important in 2020 for Paper 1 and Paper 2. (Gr 12).
Basically, interpretation will include:
- Using Financial Indicators to analyse and make meaningful comments;
- Factors beyond financial indicators, such as comparisons, decisions and problem-solving
Main Questions for Analysis and Interpretation of Financial statements
Below are the main questions for Grade 12 Accounting for analysis and interpretation of financial statements:
- Can the business pay off its immediate debts in the short term?
- To what extent is the business financed by borrowed capital?
- Are investors interested in buying shares in this company?
- Is the business controlling expenses effectively?
- Is the business able to meet all their financial obligations with existing assets?
- Are shareholders receiving a favourable benefit from this business?
How to answer Interpretative Questions for Accounting Grade 12
- Identify the appropriate financial indicators necessary to answer the question: At times, the question will not give any indications of the financial indicators to be used. Example, Comment on the liquidity of the business… You may need to calculate the ratios (if they are not given on the table of indicators).
- Quote the figures and show the trend. Do some comparison (increase/decrease):Comparisons would include:
- Information of the same business (previous financial year/s)
- Other businesses in the same industry (competitors)
- Targets set by the business (such as a mark-up percentage)
- An alternative action (such as an investment in a fixed deposit)
- External factors such as the inflation rate, interest rate and market price of shares.
- Comment: Showing insight or understanding (focus on whether this is good or bad for the business). Provide short, concise statements. Be guided by the mark allocation as to how much information you need to provided
Downloadable pdf Docs
JOIN OUR TELEGRAM CHANNEL. CLICK HERE
Be the first to comment