Basic Techniques

Question 1

The following questions need to be discussed.

1. Discuss the Risk Management process using the ISO 31000 model and explain what needs to be done at each step in this process and what should be considered in each step. (25)

2. Using a matrix discuss how this can be used to analyse risk and the different basic techniques that can be used for control. (25)

3. Discuss the main macro factors influencing/affecting Risk Management currently in South Africa. Hint How? (25)

Question 2

a) Explain the differences between the presentation of cash flows from operating activities under the direct method and their presentation under the indirect method?b) The following information has been provided in relation to SWA PLC

Additional Information,

•  During the year, the company raised its capital employed using debt and equity capital
•  Plant with carrying amount of Rs 680,000 (cost Rs 800,000, and accumulated depreciation Rs120,000) was sold .
•  Dividend declared during the year were Rs1400,000
•  Discount allowed during the year was Rs 100,000. This was included in other expenses and receivables.
•  The whole sale is made on credit basis and 50% of the purchases are on cash basis.

Required:Prepare a Statement of Cash Flows for the year ended 31st March 2016using direct method, in accordance with LKAS 7.