Elements and Performance Criteria

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Strengths and weaknesses may include:
cash flow schedules
budget estimates
financial monitoring
unit costs
revenue forecasts
internal control compliance
Short and long term obligations may include:
debt retirement
salaries
periodic payments (eg leases, loans)
taxation payments
superannuation
dividends
capital structure decisions
Standard financial analysis techniques may include:
cost-benefit analysis
'what if' analysis
time series
bivariate and multivariate analysis
break even analysis
Financial priorities may include:
sales targets
revenue estimates
rates of returns
cost minimisation (capital and recurrent costs)
periodic monitoring and transparency of expenditure
Investments may include:
property
shares and securities, preference shares
debentures
plant and equipment
interest bearing accounts
Financial options may include:
cost recoveries
budget absorption
purchases
adjustment of borrowings
asset liquidation
long term investments
expenditure re-prioritisation
equity injections
Assets and liabilities may include:
property investments
shares, bonds, securities
loans, leases, debts
plant and equipment
personnel
cash
investments
Organisational policies and procedures may include:
price and exchange parameters
reporting requirements
financial analysis assessments
recording and filing systems
standard financial analysis techniques
financial management manuals
Standard accounting techniques may include:
discounted cash flows
deprival asset valuations
rates of return
pay back periods
impact statements
pro-rata and percentage apportionment
direct allocation
break-even analysis
Risk strategiesmay include:
quantification of risks
periodic reporting
decision making authorities
policy statements
forecasting
comparative analysis
capital structure

EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
knowledge of standard financial analysis techniques
knowledge of standard accounting techniques
knowledge of organisational polices and procedures
ability to evaluate returns to operations
ability to determine long and short term needs
ability to review performance
Critical aspects of evidence
Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.
Delivery/assessment relationship to other units:
Prerequisite units:
FNSACCT503B Manage budgets and forecasts.
Assessment requirements
Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.
Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Resources required for assessment:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.