Unit of competency Outline
Date retreived
22/07/2026 11:46 PM AWST
22/07/2026 11:46 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Evaluate organisation's financial performance
Evaluate organisation's financial performance
Unit of competency
National Code
FNSACC608A
FNSACC608A
State Code
D4053
D4053
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
07/07/2014
Field of Education
080101 - Accounting
Original Release Date
07/07/2014
Nominal Hours
50
Description
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.
Notes
Elements and 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
RANGE STATEMENT
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.
Strengths and weaknesses may include:
budget estimates
cash flow schedules
financial monitoring
internal control compliance
revenue forecasts
unit costs.
Short-term and long-term obligations may include:
capital structure decisions
debt retirement
dividends
periodic payments such as:
leases
loans
salaries
superannuation
taxation payments.
Standard financial analysis techniques may include:
'what if' analysis
bivariate and multivariate analysis
break-even analysis
cost-benefit analysis
time series.
Financial priorities may include:
cost minimisation:
capital
recurrent costs
periodic monitoring and transparency of expenditure
rates of returns
revenue estimates
sales targets
Investments may include:
debentures
interest bearing accounts
plant and equipment
preference shares
property
shares and securities.
Financial options may include:
adjustment of borrowings
asset liquidation
budget absorption
cost recoveries
equity injections
expenditure reprioritisation
long-term investments
purchases.
Assets and liabilities may include:
cash
investments
loans, leases and debts
plant and equipment
property investments
shares, bonds and securities.
Organisational policies and procedures may include:
financial analysis assessments
financial management manuals
price and exchange parameters
recording and filing systems
reporting requirements
standard financial analysis techniques.
Standard accounting techniques may include:
break-even analysis
deprival asset valuations
direct allocation
discounted cash flows
impact statements
pay-back periods
pro rata and percentage apportionment
rates of return.
Risk strategies may include:
capital structure
comparative analysis
decision making authorities
forecasting
periodic reporting
policy statements
quantification of risks.
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.
Strengths and weaknesses may include:
budget estimates
cash flow schedules
financial monitoring
internal control compliance
revenue forecasts
unit costs.
Short-term and long-term obligations may include:
capital structure decisions
debt retirement
dividends
periodic payments such as:
leases
loans
salaries
superannuation
taxation payments.
Standard financial analysis techniques may include:
'what if' analysis
bivariate and multivariate analysis
break-even analysis
cost-benefit analysis
time series.
Financial priorities may include:
cost minimisation:
capital
recurrent costs
periodic monitoring and transparency of expenditure
rates of returns
revenue estimates
sales targets
Investments may include:
debentures
interest bearing accounts
plant and equipment
preference shares
property
shares and securities.
Financial options may include:
adjustment of borrowings
asset liquidation
budget absorption
cost recoveries
equity injections
expenditure reprioritisation
long-term investments
purchases.
Assets and liabilities may include:
cash
investments
loans, leases and debts
plant and equipment
property investments
shares, bonds and securities.
Organisational policies and procedures may include:
financial analysis assessments
financial management manuals
price and exchange parameters
recording and filing systems
reporting requirements
standard financial analysis techniques.
Standard accounting techniques may include:
break-even analysis
deprival asset valuations
direct allocation
discounted cash flows
impact statements
pay-back periods
pro rata and percentage apportionment
rates of return.
Risk strategies may include:
capital structure
comparative analysis
decision making authorities
forecasting
periodic reporting
policy statements
quantification of risks.
EVIDENCE GUIDE
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.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
use standard financial analysis techniques and accounting techniques plus organisational policies and procedures to evaluate returns to operations
determine long and short-term organisational needs
review financial performance across an organisation.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to an integrated financial software system and data.
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:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
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.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
use standard financial analysis techniques and accounting techniques plus organisational policies and procedures to evaluate returns to operations
determine long and short-term organisational needs
review financial performance across an organisation.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to an integrated financial software system and data.
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:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9615 | FNSACCT608B | Evaluate organisation's financial performance | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ20 | FNSACC608 | Evaluate organisation's financial performance | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S735 | FNS60210 | Advanced Diploma of Accounting | Qualification |
| J324 | PSP60312 | Advanced Diploma of Government (Financial Management) | Qualification |