Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Evaluate options for insolvency
   • Identify, locate and secure assets and liabilities to be included in insolvency
   • Interpret insolvency plans to determine operational decisions in consultation with stakeholders
   • Estimate potential returns from realisation of assets from assessment of market values, and fees and expenses
   • Identify, evaluate and resolve claims of creditors using agreed criteria and standard accounting practices
   • Make decisions regarding insolvency using agreed criteria
2. Establish timelines and objectives
   • Develop and confirm milestones for completion of project tasks as part of insolvency plan
   • Develop implementation schedules with defined target dates and communicate to stakeholders
   • Allocate operational liaison and reporting responsibilities to ensure completion of tasks
3. Monitor progress
   • Identify, acquire and validate data relevant to insolvency program
   • Analyse outcomes of insolvency plan and document in accordance with established forms of insolvency administration, statutory requirements and codes of conduct
   • Support day-to-day administration of program through liaison and regular reporting
   • Assess delays in implementation and develop and negotiate solutions
   • Ensure recommendations to clients are clear, concrete and based on reasoned examination of data

Performance Evidence

Evidence of the ability to:

analyse relevant financial data and evaluate potential insolvency options that comply with statutory requirements

establish timelines and objectives for an insolvency plan

monitor progress and adjust plan as required.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

---

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

explain the key features of comprehensive practices and principles of insolvency administration

identify and describe depreciation methods allowed by tax authorities

outline the key duties and responsibilities of insolvency administrators and liquidators

identify and discuss the key ethical considerations for the handling of financial insolvency such as:

conflict of interest

confidentiality

disclosure requirements

identify and describe the forms and functions of employee records

identify and explain the key features of legislation relating to insolvency management, covering the following:

corporations

taxation assessment

workplace relations

privacy

consumer and competition

identify and explain the key principles and practices of double-entry bookkeeping and accrual accounting in budgetary control

explain the valuation and processes for asset disposal.

---