Elements and Performance Criteria

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 in the performance criteria is detailed below. Add any 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.
Appropriate information may be obtained from sources such as:
business brokers and valuers
business consultants
clients
court decisions
databases
established media and industry analysts and commentators
other similar businesses
the business
the industry.
Legislative and agency requirements may relate to:
access and equity policy, principles and practice
business and performance plans, including organisational goals and objectives
industry and agency codes of conduct and practice and code of ethics
provision of business broking services
mission statements
strategic plans
OHS policies, procedures and programs
organisational policies, guidelines and requirements

policies and procedures relating to own role, responsibility and delegation
privacy and confidentiality requirements
quality assurance and procedures manuals, including sales and client liaison procedure manuals
records and information systems
reporting and communication structures.
Business technology may include:
computer software used to store and access data, including:
database applications, including spreadsheets
word processing applications
internet
intranet.
Market information may include:
current market information
demographic data, such as size, nature of industry, shifts in usage and uptake rates
economic conditions and business confidence levels
global and local issues that may affect the identified business or sector
market reports, analysis and commentary
opposition and competition
raw market data and trends.
Financial data may include:
balance sheets
bookkeeping, accounting, stock and job costing records
business capital
cash flow forecasts
financial budgets
profit and loss statements.
Source and occupancy documents may relate to:
source documents:
financial statements
franchise agreements

plant and equipment inventories
occupancy documents:
body corporate and strata agreements
leases
statutory paperwork, such as incorporation documents.
Associated components may include:
equipment
intangible assets, such as goodwill
intellectual property, such as:
patents
trademarks
liabilities
other tangible assets, such as:
plant
stock
work in progress.
Appraisal practices may include:
applying the sanity test
asset-based
data collection relating to:
equipment
financial accounts
fixtures and fittings
lease
listings
ownership details
plant
rent reviews
normalising the accounts
recommended listing price of business
structure of lease

use of accepted valuation methods, such as:
backup method
build-up method
capitalised earning method
comparable sales method
discounted cash flow method
excess earnings and super profit method
industry adopted methods, such as rent rolls
summation method
use of accounting ratios
vertical, horizontal and trend analysis of financial statements.
Market-related pricing structures may relate to:
client financed sale
encumbered or unencumbered
method of sale (e.g. auction or direct purchase)
plant and equipment as separate sales
pricing for sale of business as a whole or in component parts
staggered purchase and/or retention arrangements
tax implications.
Feedback may include:
formal and informal discussions with existing and previous clients
information from potential buyers
information provided by others involved in the appraisal process, both internal and external to the organisation.
Recommendations may relate to:
conditions of tenure
current market prices
equipment and plant
fittings and fixtures
goodwill
liabilities

other assets
ownership arrangements
terms and condition of sale and listing.
Appraised price refers to a realistically determined buying or selling price that takes account of:
current market price tolerances
terms of sale, including timeframes and conditions
valuation of the business.
Conclusions and recommendations may relate to:
business structure and ownership
market expectations
marketing options
plant and equipment sales
price and pricing structure
valuation and appraisal.
Records and documentation may include:
documents and pro formas for the client
forms and paperwork required by legislation and statutory regulations
internal documents required for the completion of the appraisal process.

EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Overview of assessment
This unit of competency could be assessed through practical demonstration of appraising a business. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
A person who demonstrates competency in this unit must be able to provide evidence of:
analysing the business and associated plant and equipment and finances, as they relate to appraising a business
clarifying concerns and communicating with clients to enable the appraisal process and resolve complications
documenting agreements and distributing relevant documents and information to clients and other relevant internal and external parties
knowledge of agency practice, ethical standards and legislative requirements associated with appraising a business
preparing and structuring advice on the appraisal process.
Context of and specific resources for assessment
Resource implications for assessment include:
access to suitable resources and simulated or real opportunities to demonstrate competence
assessment instruments that may include personal planner and assessment record book
access to a registered provider of assessment services.
Where applicable, physical resources should include equipment modified for people with disabilities.
Access must be provided to appropriate learning and/or assessment support when required.
Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.
Validity and sufficiency of evidence require that:
competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence
all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence
where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time
assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.
In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.