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Unit of competency details

AHCBUS519 - Manage finance, insurance and legal requirements (Release 1)

Summary

Usage recommendation:
Deleted
The Deleted usage recommendation was implemented on 13 June 2017 to describe training components that have no replacement. Enrolments in training components and statements of attainment or qualifications issued before 13 June 2017 are valid. For any components marked as deleted after 13 June 2017, the applicable transition/teach-out periods apply. For specific questions regarding the enrolment, delivery or issuance of a statement of attainment/qualification, please contact your training regulator.
Mapping:
MappingNotesDate
DeletedDeleted from AHC Agriculture, Horticulture and Conservation and Land Management Training Package12/Feb/2021
Supersedes and is equivalent to AHCBUS510 - Manage finance, insurance and legal requirementsPerformance criteria clarified. Foundation skills added. Assessment requirements updated.20/Oct/2019

Releases:
ReleaseRelease date
1 1 (this release) 21/Oct/2019

Companion volumes:
Unit of competency Assessment requirements

Delivery:
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Training packages that include this unit

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Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080321 Farm Management And Agribusiness  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080321 Farm Management And Agribusiness  21/Oct/2019 
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Unit of competency

Modification History

Release

Comments

Release 1

This version released with AHC Agriculture, Horticulture, Conservation and Land Management Training Package Version 4.0.

Application

This unit of competency describes the skills and knowledge required to manage finance, insurance and legal requirements for a production-based business.

This unit applies to individuals who take responsibility for their own work and provide and communicate solutions to a range of predictable and sometimes unpredictable problems especially in relation to managing finance, insurance and legal requirements.

All work must be carried out to comply with organisational requirements, work health and safety legislation and codes and in consultation with the management team.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Pre-requisite Unit

Nil

Unit Sector

Business (BUS)

Elements and Performance Criteria

Elements

Performance Criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Manage the legal requirements of the business

1.1 Identify, implement and monitor legislative requirements to meet compliance requirements

1.2 Identify where expert legal advice is required to ensure compliance

1.3 Identify, maintain and store legal documents

1.4 Review legislative requirements regularly

2. Process and maintain the insurance requirements for the business

2.1 Identify insurable items of the business

2.2 Conduct a risk assessment to determine the likely consequences of adverse risk outcomes

2.3 Identify suitable insurers or brokers and obtain quotations on price and premium payment options

2.4 Conduct a cost/benefit analysis to determine the requirement for insurance

2.5 Identify and evaluate the potential for under- or over-insurance

2.6 Review legislative requirements for insurance cover

2.7 Acquire adequate insurance policies and cover

2.8 File documents to ensure security and accessibility

3. Identify sources, types and cost of finance

3.1 Conduct research on the types of finance for production-based businesses

3.2 Determine costs associated with different forms of finance

3.3 Identify the opportunity cost of utilising internal funding sources instead of external sources

3.4 Assess the advantages and disadvantages of each type of finance

3.5 Assess repayment structures for finance options

3.6 Assess the taxation implications of finance options

4. Prepare application for finance or investment

4.1 Access business and financial data and prepare an application for finance or investment

4.2 Check the finance application for accuracy and submit it to the relevant body

4.3 Maintain and store documentation

5. Manage finance repayments

5.1 Develop a budget for the business to demonstrate repayment and interest commitments can be met

5.2 Establish contingencies to ensure finance costs are met when cashflow is restricted

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential for performance in this unit of competency but are not explicit in the performance criteria.

Skill

Description

Numeracy
  • Analyse and forecast trends in income and expenditure

Unit Mapping Information

Code and title current version

Code and title previous version

Comments

Equivalence status

AHCBUS519 Manage finance, insurance and legal requirements

AHCBUS510 Manage finance, insurance and legal requirements

Performance criteria clarified

Foundation skills added

Assessment requirements updated

Equivalent unit

Links

Companion Volumes, including Implementation Guides, are available at VETNet: - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c6399549-9c62-4a5e-bf1a-524b2322cf72

 

Assessment requirements

Modification History

Release

Comments

Release 1

This version released with AHC Agriculture, Horticulture, Conservation and Land Management Training Package Version 4.0.

Performance Evidence

An individual demonstrating competency must satisfy all of the elements and performance criteria in this unit. There must be evidence that the individual has managed the finance, insurance and legal requirements of at least one business, including:

  • interpreted financial reports and business data
  • maintained basic accounts for the business
  • processed and maintained the insurance requirements for the business
  • identified sources, types and cost of finance
  • prepared an application for finance or investment.

Knowledge Evidence

An individual must be able to demonstrate the knowledge required to perform the tasks outlined in the elements and performance criteria of this unit. This includes knowledge of:

  • legislation and regulations relevant to business
  • legal requirements related to insurance, including WorkCover
  • risk assessment processes
  • cost/benefit analysis processes
  • opportunity cost calculation
  • finance processes utilised within the business
  • taxation and account keeping requirements.

Assessment Conditions

Assessment of skills must take place under the following conditions:

  • physical conditions:
  • skills must be demonstrated in a workplace setting or an environment that accurately represents workplace conditions
  • resources, equipment and materials:
  • access to financial and insurance records for a business.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Links

Companion Volumes, including Implementation Guides, are available at VETNet: - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c6399549-9c62-4a5e-bf1a-524b2322cf72

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