This unit applies to individuals with managerial responsibility for compiling required financial information; identifying and meeting compliance requirements of relevant international, Australian and overseas finance regulations; and analysing the financial information to frame recommendations to improve compliance and the effectiveness of international business activity.

ELEMENT

PERFORMANCE CRITERIA

1. Compile financial information

1.1. Identify financial information related to international business activity and separate from domestic business activity for reporting and compliance purposes

1.2. Collect relevant current financial data, convert to currency used in report, and evaluate and code to ensure consistency, quality and accuracy in accordance with organisational requirements

1.3. Use conversion and consolidation procedures to compile analysis in accordance with organisational requirements

1.4. Make, record and disclose asset and liability valuations, in accordance with organisational requirements

1.5. Identify, resolve or refer discrepancies, unusual features or queries to the appropriate authority

2. Ensure compliance with relevant international finance regulations

2.1. Identify financial compliance requirements associated with international business activity for relevant international finance regulations

2.2. Access processes to ensure compliance with financial compliance requirements for relevant international finance regulations, from workplace policies and procedures, and relevant information sources

2.3. Record income and expenditure to ensure compliance with statutory requirements

2.4. Calculate liabilities for tax in accordance with relevant legislation

2.5. Identify relevant receipts, revenue documentation and payments correctly

2.6. Ensure statements and claims take full advantage of available benefits and allowances in accordance with statutory requirements

2.7. Submit statutory requirement reports to appropriate authorities within stated deadlines

3. Provide financial business recommendations

3.1. Derive recommendations logically and support with evidence in report

3.2. Ensure recommendations propose constructive actions to enhance the effectiveness and efficacy of functions and services related to international business activity

3.3. Ensure recommendations are concise and facilitate direction and control of organisation's international operations

3.4. Identify and prioritise significant issues in statements, including comparative financial performances, for review and decision making

3.5. Ensure structure and format of reports are clear and conform to organisational and statutory requirements

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

organisational skills to complete tasks accurately and with attention to detail

financial management skills to report on international finances with integrity and financial probity

literacy skills to write complex financial reports

numeracy skills to produce complex financial reports

research, information-gathering, analytical, evaluation and assessment skills to report on the financial aspects of an international business

technology skills to gather, store, use and report on financial information.

Required knowledge

organisational procedures and requirements relating to compliance issues and financial reporting

principles of accounting and financial systems

product or service knowledge for the products/services being marketed and traded by the organisation internationally

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

Trade Practices Act

World Trade Organisation rules

bilateral or regional trade agreements

International Commercial Terms (INCOTERMS)

Warsaw Convention

occupational health and safety (OHS)

sources of information to facilitate compliance with relevant international finance regulations.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

demonstration of the collation and analysis of financial data for the international business operations of an organisation in compliance with Australian, international and overseas financial regulations

financial report on the organisation's international business operations containing recommendations for improvements in both compliance and the efficiency of the organisation's international business operations

knowledge of relevant Australian, international and local legislation and conventions.

Context of and specific resources for assessment

Assessment must ensure:

access to office equipment and resources

access to workplace documents including completed reports

access to relevant information sources.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

observation of presentations of financial performance of international business activities

observation of techniques used to report on finances related to international trade/business

oral or written questioning to assess knowledge of principles of accounting and financial systems

review of recording of income and expenditure

assessment of asset and liability valuations recorded and disclosed

assessment of prioritisation of significantissues in statements, for review and decision making.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

finance units

international business units

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, if used in the performance criteria, is detailed below. 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) may also be included.

Financial data may include:

budgets, forecasts and variations

cash flow/profit reports

financial/operational statements and reports (e.g. expenditures and receipts, profit and loss statements)

market valuations

Organisational requirements may include:

financial analysis assessments

financial management manuals

legal and organisational policy/guidelines and requirements

OHS policies, procedures and programs

price and exchange parameters

quality assurances and/or procedures manuals

recording and filing systems

reporting requirements

standard financial analysis techniques

Conversion and consolidation procedures may include:

moving averages

spreadsheets

standardised variables

trend analysis

unit costs

Discrepancies may include:

absence of auditable trail

expenditure report mismatches

inappropriate authorisations

incorrect payments

incorrect report formats

unreconciled cash flows and operating statements

variances from budget and phasings

International finance regulations may include:

Australian government regulatory authorities

international organisations and bodies

regulatory authorities in overseas countries

Information sources may include:

academics and training providers

Austrade and other Australian, state/territory government departments and agencies

overseas embassies, consulates, government departments and agencies within Australia and overseas

trade and industry publications

Statutory requirements may include:

delegated authorities

internal control procedures

limits on volumes and types of financial transactions

reporting of duty, excise and other overseas government charges

reporting periods

taxation and payment timings

Revenue documentation may include:

bills

cash received

countertrade documentation

debit notes

declarations

forfaiting records

invoices

other documentation involving exchange of money or goods in place of money

records of barter

sales proceeds

Benefits and allowances may include:

depreciation

donations

goods and services tax (GST) credits derived from export deductions

interest payments

other allowances made to exporters by the Australian government

other allowances made to international traders by overseas governments

Deadlines may include:

annual reports

lodgement dates

monthly returns

payment schedules

Recommendations may include:

cash flow

changes in business activity including markets, goods or services traded

consolidation

expenses and overheads

labour costs including decisions to move production partly or wholly offshore

loss

profit

write-offs

Evidence may include:

budgetary analysis

documented costs

forecasts and estimates

order and supplier documentation

returns on investments

taxation and statutory returns

Issues may include:

cost structures

internal controls

losses and returns

profitability

statutory obligations

suppliers and markets

Format may include:

audits

balance sheets

cash flow statements

electronic forms

financial year reports

operating statements

spreadsheets

statutory forms

Unit sector

Business Development - International Business

This unit contains employability skills.