Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to evaluate returns to operations, determine short-term and long-term needs and evaluate an organisation's financial position and performance. This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body. |
Application of the Unit
Application of the unit |
This unit can be applied to all sectors within the financial services industry and has application to job functions that have responsibility for determining the organisation's financial performance such as an accountant. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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FNSACC503A |
Manage budgets and forecasts |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Evaluate returns to operations |
1.1. Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations 1.2. Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance 1.3. Investment returns are evaluated against risk, profit and capital budget requirements |
2. Determine short-term and long-term needs |
2.1. Resources required by organisation to meet short -term and long -term obligations are identified and costed using standard financial analysis techniques 2.2. Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments 2.3. Financial options are reviewed and analysis of a range of possible assets and liabilities to optimise the capital mix is conducted to support operations and trading need 2.4. Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles 2.5. Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques |
3. Review performance |
3.1. Forecasts made are justifiable given observed trends, information, events and assumptions with standard errors calculated to produce levels of accuracy suitable for planning purposes 3.2. Forecasts are reviewed regularly in line with actual performance and alternative sources of information 3.3. Risk strategies are assessed for long-term viability and harmonised with short-term goals and obligations |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Strengths and weaknesses may include: |
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Short -term and long -term obligations may include: |
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Standard financial analysis techniques may include: |
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Financial priorities may include: |
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Investments may include: |
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Financial options may include: |
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Assets and liabilities may include: |
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Organisational policies and procedures may include: |
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Standard accounting techniques may include: |
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Risk strategies may include: |
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Unit Sector(s)
Unit sector |
Accounting |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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