Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSACCT608B Mapping and Delivery Guide
Evaluate organisation's financial performance

Version 1.0
Issue Date: March 2024


Qualification -
Unit of Competency FNSACCT608B - Evaluate organisation's financial performance
Description This unit covers the analysis and estimation process required to determine an organisations financial position and performance.This unit covers the analysis and estimation process required to determine an organisations financial position and performance.
Employability Skills The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Learning Outcomes and Application This unit requires the application of skills and knowledge required to evaluate an organisations financial performance. The unit encompasses evaluating returns to operations, determining long and short term needs and reviewing performance. This unit can be applied to all sectors with the financial services industry and has application to those job functions that have responsibility for determining the organisations financial performance such as an accountant. This unit requires the application of skills and knowledge required to evaluate an organisations financial performance. The unit encompasses evaluating returns to operations, determining long and short term needs and reviewing performance. This unit can be applied to all sectors with the financial services industry and has application to those job functions that have responsibility for determining the organisations financial performance such as an accountant.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites Not applicable.
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities
Slides
PPT
Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Evaluate returns to operations
  • Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations
  • Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance
  • Investment returns are evaluated against risk, profit and capital budget requirements
       
Element: Determine short and long term needs
  • Resources required by organisation to meet short and long term obligations are identified and costed using standard financial analysis techniques
  • Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments
  • Financial options review and analyse a range of possible assets and liabilities to optimise the capital mix required to support operations and trading need
  • Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles
  • Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques
       
Element: Review performance
  • Forecasts are justifiable given observed trends, information, events and assumptions
  • Standard errors are calculated to produce levels of accuracy suitable for planning purposes
  • Forecasts are reviewed regularly in line with actual performance and alternative sources of information
  • Risk strategies are assessed for long term viability and harmonised with short term goals and obligations
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

REQUIRED KNOWLEDGE&SKILLS

Knowledge requirements include:

principles of cash flow and budgetary control

principles of cost-benefit analysis and use of forecasting techniques

principles of internal control (including statutory requirements)

capacity to establish long and short term plans (eg SWOT analysis)

principles of risk management

duties of auditors

financial legislation (eg taxable transactions, reporting requirements)

ethical considerations for compliance

understanding of organisational structures and lines of management authority

Skills requirements include:

planning skills for timetabling and scheduling reports and lodgements

recording, gathering and consolidating financial information

researching and identifying applicable accounting standards and decisions

interpersonal skills and communication skills (eg liaising, listening, consulting)

report writing and preparation

numeracy skills for calculation of data

statistics

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

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations 
Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance 
Investment returns are evaluated against risk, profit and capital budget requirements 
Resources required by organisation to meet short and long term obligations are identified and costed using standard financial analysis techniques 
Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments 
Financial options review and analyse a range of possible assets and liabilities to optimise the capital mix required to support operations and trading need 
Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles 
Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques 
Forecasts are justifiable given observed trends, information, events and assumptions 
Standard errors are calculated to produce levels of accuracy suitable for planning purposes 
Forecasts are reviewed regularly in line with actual performance and alternative sources of information 
Risk strategies are assessed for long term viability and harmonised with short term goals and obligations 

Forms

Assessment Cover Sheet

FNSACCT608B - Evaluate organisation's financial performance
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

FNSACCT608B - Evaluate organisation's financial performance

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: