Net Value is a concept under the B-BBEE Ownership scorecard measuring the unencumbered shareholding.
What you'll learn
Understand the formulas to determine Net Value
Calculate Net value based on the provided requirements
Understand the theory behind net value and its application
Obtain tips and tricks to fully comply
Requirements
Basic understanding of B-BBEE
Description
Net Value is a concept under the B-BBEE Ownership scorecard measuring the unencumbered shareholding in the hands of black shareholding. It is therefore critical to understand the importance of that when entering a B-BBEE deal. - Rules to abide by - Formulas - CalculationsUnder the generic scorecard, 8 points is allocated to Net Value under the ownership scorecard. Should a measured entity not receive a minimum of 3.2 / 8 for this indicator, it effectively means that the measured entity would be discounted with one level.It can become a technical point, but effectively it measures the value created in the hands of black people taking into consideration variables like:1. The debt portion coupled to the shares – if there is a debt portion, either to the measured entity itself or a third party, this will have an effect on the value creation.2. The value of the measured entity – if this decreased since the acquisition date, this effectively means the value of the share has decreased as well. The debt(liability) portion will most like increase due to interest, and therefore your value has decreased compared to debt, and this will have a negative effect on the outcome.The Amended Codes provide a graduation factor over 10 years to reach unencumbered black shareholding.
Overview
Section 1: Introduction
Lecture 1 Introduction
Lecture 2 Purpose of this course
Section 2: Net Value
Lecture 3 Net Value Definitions
Lecture 4 Valuations and who can do it
Lecture 5 Net value formulas
Lecture 6 Rules
Lecture 7 Examples
Lecture 8 Time graduation formula
Lecture 9 Time graduation
Lecture 10 Examples
Any B-BBEE practitioner
Homepage
https://www.udemy.com/course/net-value-calculation-for-b-bbee/