Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to plan and schedule a financial forecast or projection, identify assumptions and parameters, and collect, consolidate and analyse data to make forecasts or projections before documenting results and obtaining approval. No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement. |
Application of the Unit
Application of the unit |
This unit may apply to forecasting job roles in any sector of the financial services industry. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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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. Plan preparation timetable |
1.1. All critical milestones are identified to ensure financial forecasts and projections can be prepared within timeframes 1.2. Business plans, financial forecasting and processing systems are reviewed to identify timeframes and parameters and any potential conflicts |
2. Identify assumptions and parameters |
2.1. Business plans and exception reports are reviewed to identify and resolve conflicts in assumptions 2.2. Assumptions and parameters are reviewed to ensure compliance with organisation policy and procedures 2.3. Current and historical financial reports are analysed to establish trends and the external environment examined to gain an objective overview |
3. Issue instructions and relevant aids for preparation of forecasts and projections |
3.1. Instructions issued are clear and unambiguous and comply with organisation format to ensure ease of use and consistency of interpretation 3.2. Types of business are identified to enable effective financial models to be selected with training provided to ensure comprehensive understanding and effective use of the models by users |
4. Collect, consolidate, model and analyse data |
4.1. Data is reviewed to ensure consistency with actual results and model used with analysis results documented in a clear and unambiguous way 4.2. Data collected are reliable, valid, complete and comprehensive 4.3. Processing is completed in accordance with established timetable and data are consolidated in a logical structured format that enables ready analysis |
5. Document results and obtain approval |
5.1. Results are documented in a clear and understandable manner and in a format suitable to meet needs of target users 5.2. All approvals are obtained in accordance with management objectives, financial and organisation policies and the results distributed within the timetable |
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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Forecasts may include: |
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Organisation policy and procedures may include: |
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Current and historical financial reports may include: |
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External environment may include: |
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Financial models may include: |
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Users may include: |
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Unit Sector(s)
Unit sector |
Organisational skills |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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