Grade 12 Accounting

Accounting concepts unique to companies (public/private companies, Companies Act 71 of 2008, registrar/CIPRO, MOI, income tax/provisional income tax, dividends, shares, earnings, shareholders, limited liability, separation of ownership from control, directors, auditors, retained income, authorised and issued share capital, JSE). IFRS and GAAP (including historical cost, prudence, materiality, business entity rule, going concern, matching). Accounting cycle for a company with journals, ledger accounts and trial balance. Transactions include issue of shares (no par value and share premium), buying back of shares, loans and interest (interest on mortgage loan capitalised), income tax, dividends, directors' fees and audit fees.

Prepare final accounts and detailed financial statements of a company with year-end adjustments (trading stock, consumable stores, depreciation, bad debts and recoveries, corrections, accrued and prepaid items, provisions, income tax, dividends). Final accounts include trading account, profit and loss account and appropriation account. Financial statements and notes include statement of comprehensive income, statement of financial position and cash flow statement.

Analysis and interpretation of income statement, balance sheet and notes. Revise indicators (gross profit on sales/cost of sales, net profit on sales, operating expenses and profit on sales, current ratio, acid test ratio, stock turnover, stock holding period, average debtors' collection period, average creditors' payment period, solvency ratio, debt-equity ratio) and introduce indicators (ROSHE, ROTCE, NAV, DPS, EPS, dividend pay-out rate). Analyse published financial statements and annual reports, including directors' report and auditors' report.

Validation, valuation and calculation of inventories using perpetual and periodic systems: specific identification, FIFO and weighted average. Integrate GAAP principles, ethical issues and internal audit/control processes relating to inventories. Interpret and report on movement of assets (age, replacement rate, lifespan).

Interpretation and reporting on fixed assets, with application of internal control and internal audit processes: audit evidence and sampling, internal audit reports, accountable management of resources, and differences between internal and external auditors.

Accounting concepts for manufacturing businesses. Prepare and analyse a production cost statement and abridged income statement with notes for administration and selling & distribution cost. Calculate gross profit on finished goods sold, variable and fixed costs, cost per unit, breakeven point and total cost of production. Integrate ethical issues and internal control relating to manufacturing.

Analyse and interpret bank, debtors' and creditors' reconciliations. Reconcile creditors' statements to ledger accounts; reconcile debtors and creditors lists with control accounts; analyse debtors' age analysis; interpret bank statements and bank reconciliation statements. Integrate ethical, internal audit and control issues for cash, debtors and creditors.

VAT calculations; calculate the amount payable to or receivable from SARS; complete the VAT control ledger account as an additional method to determine the amount payable or receivable. Integrate ethical issues, internal audit and control processes.

Projected income statement (statement of comprehensive income) with projected revenue and expenditure. Differences between projected income statements and cash budgets. Analyse, interpret and compare projected income statements and cash budgets for sole traders or companies, including receipts, payments, debtors' collection, creditors' payment and cash balances. Integrate ethical issues and internal audit/control processes for budgets and projections.

Revise all Grade 12 topics and relevant prior knowledge from Grades 10-11.

Two papers on different days (150 marks, 2 hours each). Paper 1 focuses on financial reporting and evaluation. Paper 2 focuses on managerial accounting, internal auditing and control. Formula sheets are provided.

Revision of all CAPS topics.

Final examination over all CAPS topics, written as two papers on different days.

Planning for 2024/5.