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. Plan preparation timetable
   • Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes
   • Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts
2. Identify assumptions and parameters
   • Review business plans and exception reports to identify and resolve conflicts in assumptions
   • Review assumptions and parameters to ensure compliance with organisational policy and procedures
   • Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview
3. Issue instructions and relevant aids for preparation of forecasts and projections
   • Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation
   • Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models
4. Collect, consolidate, model and analyse data
   • Review data to ensure consistency with model used and document analysis results clearly
   • Collect reliable, valid, complete and comprehensive data
   • Process and consolidate data in logical structured format that enables ready analysis according to established timetable
5. Document results and obtain approval
   • Document results clearly in suitable format that meets needs of target users
   • Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable

Performance Evidence

Evidence of the ability to:

comply with organisational policy and procedures that relate to the preparation of financial forecasts and projections

apply standard accounting principles and techniques

accurately identify assumptions and parameters of forecasts

collect, consolidate, model and analyse data in a timely manner

document forecasts and projections, and obtain approval where 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:

describe relevant financial industry codes of practice

explain financial forecasting techniques, models and best practice

identify key users or audience for financial forecasts and projections

outline factors in the external environment that can impact on financial forecasts

outline the relevance of historical financial reports to forecasting

identify and interpret relevant organisational policy and procedures

explain key requirements of relevant legislation and regulations that influence the financial services industry.

---