Technical Programmes

Analysis & Interpretation of AFS

February 15, 2020

Course Duration: 1 - 3 days

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This programme outcome is for delegates to:

  • Understand the different accounting frameworks that are applied by different Public sector entities in SA such as municipalities, departments, Schedule 3A, 3B, 3C and 3D entities, TVET Colleges, Legislatures and more.
  • Be able to read, understand and analyse all the various components of a set of AFS, such as the Balance Sheet, Income statement, cash flow statement and the auditor’s report.
  • Be able to read, understand and analyse all the line items included in a set of AFS. You will learn what line items like Investment property and Impairment losses mean, and what impact they may have on the future of the entity.
  • Be able to perform a detailed analysis of the AFS and be able to identify the financial strengths and weaknesses of the entity.
  • Be able to understand how the entity’s AFS can be used as a strategic planning tool.
  • Perform financial management ratio assessments:
Category Ratios on the following:
Financial position analysis •         Asset management

•         Debtors management

•         Liquidity management

•         Liability management
Financial performance analysis •         Efficiency: Sustainability

•         Service delivery and distribution losses

•         Revenue & Expenditure management
Budget implementation analysis •         Capital management

•         Operating expenditure

•         Operating Revenue