Elements and Performance Criteria

The Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available.

What type of legal requirements would be relevant to an agricultural or horticulture business?
Legal requirements may include obligations imposed by the choice of the business structure, marketing the business in accordance with consumer legislation, operating with a duty of care (Law of Torts). Relevant legislation from all levels of government that affect business operations, especially OHS, environmental, award and enterprise agreements, equal opportunity and anti-discrimination.

What legal documents would be required for the business?
Legal documents may include partnership agreements, statutory books for companies (Register of Members, Register of Directors, Minute Books), Certificate of Incorporation, Certificate of Registration of a Business, Family Trust Deed, and wills.

What type of insurance requirements would be relevant to an agricultural or horticulture business?
Insurance requirements may include workers' compensation, public liability, superannuation, life, personal accident and sickness, buildings, plant, crops, and vehicles.

Who might be members of the management team?
The management team may consist of oneself, family members, fellow managers, employees, professional advisors, partners, and mentors.

What is meant by insurers and insurance brokers in this industry context?
Insurance companies have policies available across areas such as general (vehicles, property, buildings, commercial, plant, crops), life (personal accident and sickness) and superannuation.
Insurance brokers work on behalf of the client and seek the best policies and premiums from insurance companies for their client.

What sources, types and cost of finance are available in this industry?
Sources of finance may include banks, merchant banks, building societies, credit unions, co-operatives, finance companies, solicitors, accountants, and private treaty.
Types of finance may include loan, overdraft, hire purchase, lease or credit.
Costs associated with securing finance include interest rate, term of the loan, establishment fees, charges, government fees, and level of security required.

What is meant by a repayment structure?
The terms and conditions for each source of finance can be calculated for the length of the loan or credit facility. This would allow for comparisons to be made between financing options.

What business and financial data would be required in preparing a finance application?
Business and financial data to be included in an application for finance may include balance sheets, profit and loss statements, production yields, sales, income, security, assets and liabilities, and cash flow performance.

What type of legal requirements would be relevant to an agricultural or horticulture business?
Legal requirements may include obligations imposed by the choice of the business structure, marketing the business in accordance with consumer legislation, operating with a duty of care (Law of Torts). Relevant legislation from all levels of government that affect business operations, especially OHS, environmental, award and enterprise agreements, equal opportunity and anti-discrimination.

What legal documents would be required for the business?
Legal documents may include partnership agreements, statutory books for companies (Register of Members, Register of Directors, Minute Books), Certificate of Incorporation, Certificate of Registration of a Business, Family Trust Deed, and wills.

What type of insurance requirements would be relevant to an agricultural or horticulture business?
Insurance requirements may include workers' compensation, public liability, superannuation, life, personal accident and sickness, buildings, plant, crops, and vehicles.

Who might be members of the management team?
The management team may consist of oneself, family members, fellow managers, employees, professional advisors, partners, and mentors.

What is meant by insurers and insurance brokers in this industry context?
Insurance companies have policies available across areas such as general (vehicles, property, buildings, commercial, plant, crops), life (personal accident and sickness) and superannuation.
Insurance brokers work on behalf of the client and seek the best policies and premiums from insurance companies for their client.

What sources, types and cost of finance are available in this industry?
Sources of finance may include banks, merchant banks, building societies, credit unions, co-operatives, finance companies, solicitors, accountants, and private treaty.
Types of finance may include loan, overdraft, hire purchase, lease or credit.
Costs associated with securing finance include interest rate, term of the loan, establishment fees, charges, government fees, and level of security required.

What is meant by a repayment structure?
The terms and conditions for each source of finance can be calculated for the length of the loan or credit facility. This would allow for comparisons to be made between financing options.

What business and financial data would be required in preparing a finance application?
Business and financial data to be included in an application for finance may include balance sheets, profit and loss statements, production yields, sales, income, security, assets and liabilities, and cash flow performance.

What evidence is required to demonstrate competence for this standard as a whole?
Competence in administering legislative, insurance and financial requirements requires evidence that the processes have been performed and monitored as stated in the elements and performance criteria. Knowledge is required of the legislative, insurance and finance requirements for the business and the ability to prepare an application for finance.
The skills and knowledge required to administer legislative, insurance and financial requirements must be transferable to a different work environment. For example, this could include agricultural and horticultural businesses ranging in size (micro, small, medium large) and location (regional, rural, remote, urban).
What specific knowledge is needed to achieve the performance criteria?
Business and financial data to be included in an application for finance may include balance sheets, profit and loss statements, production yields, sales, income, security, assets and liabilities, and cash flow performance.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, appropriate literacy and numeracy levels as well as some complementary skills are required. These include the ability to:

effectively communicate with a wide range of people from diverse backgrounds
work independently
research information using technology
calculate cost of finance
interpret financial reports and farm business data
maintain basic accounts
prepare applications for finance and/or investment.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
This competency standard

What specific knowledge is needed to achieve the performance criteria?
Business and financial data to be included in an application for finance may include balance sheets, profit and loss statements, production yields, sales, income, security, assets and liabilities, and cash flow performance.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, appropriate literacy and numeracy levels as well as some complementary skills are required. These include the ability to:

effectively communicate with a wide range of people from diverse backgrounds
work independently
research information using technology
calculate cost of finance
interpret financial reports and farm business data
maintain basic accounts
prepare applications for finance and/or investment.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
This competency standard

Communicating ideas and information
By researching information and presenting it in a logical and coherent manner. (2)

Communicating ideas and information
By researching information and presenting it in a logical and coherent manner. (2)

Collecting analysing and organising information
Information must be recorded and stored in accordance with legal and organisational requirements. (2)

Collecting analysing and organising information
Information must be recorded and stored in accordance with legal and organisational requirements. (2)

Planning and organising activities
By scheduling and processing payments to meet compliance requirements. (2)

Planning and organising activities
By scheduling and processing payments to meet compliance requirements. (2)

Working with others and in teams
By delegating tasks to others. (1)

Working with others and in teams
By delegating tasks to others. (1)

Using mathematical ideas and techniques
By calculating loan repayments and interpreting financial data for the business. (2)

Using mathematical ideas and techniques
By calculating loan repayments and interpreting financial data for the business. (2)

Solving problems
By analysing finance options for the business and recommending an approach. (2)

Solving problems
By analysing finance options for the business and recommending an approach. (2)

Using technology
By using equipment such as computers, internet, calculators, appropriate software and telephones to gather, collate and analyse information. (2)

Using technology
By using equipment such as computers, internet, calculators, appropriate software and telephones to gather, collate and analyse information. (2)