Grade 12 Accounting Task, specifically a report on a public company listed on the Johannesburg Stock Exchange (JSE), involves analyzing financial statements, assessing the company’s financial health, and providing insights into its performance. Here’s a guide on how you might structure such a report
How to Prepare for a Report on a public company listed on the JSE?
For this task you will need to use the page in the Business Report in a morning newspaper which lists the public companies that are traded on the Johannesburg Securities Exchange (JSE). You will need access to this resource on a weekly basis for a period of 5 weeks.
A rich aunt has earmarked R200 000 of her funds for investment purposes. She wants to buy shares of a public company listed on the JSE. She requires your advice. Choose a company that is well-known to you from the share page to complete the following report.
NOTE TO TEACHER: Each learner must choose a different company.
REQUIRED: Prepare a one-page report on the company you have chosen.
Preparations Guidelines for the Task:
- On the starting date of this task, calculate the maximum number of shares that your aunt can buy for R200 000 in the company that you have chosen. Ensure that she buys shares in lots of 100, that is, 100, 200, 300, etc. Also calculate how much cash she will have left on this date after the purchase of shares. She will place this in a savings account (ignore interest).
- For a period of five weeks, make a note of the share price on the same day each week. Calculate the value of her investment portfolio each week, that is, the value of the shares and the cash.
- Find out other interesting information about the company you have chosen, e.g. products sold or services provided, community service or sponsorship activities of the company, the size of the company, where it is situated, details of the directors or the CEO, the amount earned by the CEO, or any other news about the company or its history.
Report must include the following
• Draw up a table and plot a graph of the company’s share price.
• Draw up a table and plot a graph of the value of your aunt’s investment portfolio in respect of the investment in the shares and the cash that she has on hand. Do not consider the interest she will earn on her
savings account.
• Further interesting information on the company.
• Recommendation on further investment in this company, with reasons (Should you aunt consider buying
more shares in this company, or should she consider an alternative investment?)