Financial Management and Accounting Advisory Services Clarification - - PowerPoint PPT Presentation

Financial Management and Accounting Advisory Services

Clarification of Scope Meeting – 22 July 2020

July 2020

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SCOPE OF WORK: PANEL B FINANCIAL AND MANAGEMENT ACCOUNTING ADVISORY SERVICES 1/2

The following is included in the scope of work: 1. Advisory services related to International Financial Reporting Standards (IFRS), including guidance and assistance with the implementation of new / revised standards 2. Review of current standards implemented and provide assurance that these standards were implemented in terms of standards 3. Assistance and advice is needed on Eskom’s interpretation and application of complex accounting matters including recommendations for improvement. This may involve addressing technical queries from the external auditors, the JSE, audit committee, etc on an as and when needed basis. 4. Assistance and guidance to and improve the disclosure and layout of its interim and annual financial statements in terms of IFRS, legislative and other relevant reporting requirements such King IV on Corporate Governance, JSE reporting requirements, Companies Act and Public Finance Management Act. 5. Provide training and review disclosures of annual and interim reports as well as the integrated report

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6. Valuations CVA/DVA, Embedded Derivatives and other IFRS related valuations. The consultants will be expected to perform valuations of complex financial instruments such as:

• Credit Default Swap (CDS) valuations
• Calculation of Credit Value Adjustment (CVA) / Debit Value Adjustment (DVA) using the

Expected Future Exposure (EFE) method and stochastic modelling *

• Valuations of Embedded Derivatives
• Valuations of other debt structures, instruments and other requirements in compliance

with International Financial Reporting Standards (IFRS) as required from time to time for which internal expertise does not exist 7. Advisory services related to the financial elements of Eskom’s turnaround strategies and plans, including review of the financial plans, assumptions and feasibility thereof, benchmarking. 8. Assist with long term financial planning modelling 9. Financial and Operational Benchmarking of the main elements of Eskom’s performance against other peer companies i.e. revenues, costs, stand-alone credit rating profile overnight cost of construction including Levelised cost of energy, etc.

• 10. Provide assistance in developing and calculating Eskom’s Long Run Marginal Cost and

Short Run Marginal Cost

SCOPE OF WORK: PANEL B FINANCIAL AND MANAGEMENT ACCOUNTING ADVISORY SERVICES 2/2

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Functional evaluation criteria Panel B: Financial Management and Accounting Advisory Services