The unit has application across all sectors of the financial services industry and job functions that have responsibility for implementing reconstruction of an organisation such as accountants and insolvency specialists.

ELEMENT

PERFORMANCE CRITERIA

1. Evaluate options for reconstruction

1.1. Assets and liabilities to be included in the reconstruction plan are identified, located and secured

1.2. The organisation's comparative market position is analysed to identify advantages and disadvantages of operations

1.3. Sources of financing are tax efficient and ensure that optimal balances are achieved between minimising costs of servicing, financing and maintaining liquidity

1.4. Short-term and long-term financial obligations for the organisation are established and assessed against client objectives and expectations

1.5. Reconstruction milestones are established in consultation with stakeholders to identify significant deviations from expected returns

2. Establish timelines and objectives

2.1. Operational liaison and reporting responsibilities are allocated to appropriate personnel to ensure completion of tasks

2.2. Implementation schedules are developed with defined target dates and communicated and agreed with stakeholders

2.3. Performance indicators for the completion of projects are developed, modified and agreed in planning the process

3. Monitor progress

3.1. Operational data relevant to the reconstruction plan is identified, acquired and validated

3.2. Day to day administration of the program is supported by liaison and regular reporting

3.3. Delays and bottlenecks in implementation are assessed and solutions developed and negotiated

3.4. Results of progress are analysed and documented in accordance with the plan

4. Plan for disaster

4.1. Triggers for implementation arrangements are agreed with stakeholders and are communicated to relevant personnel

4.2. Contingency plans are established in line with operational performance indicators and documented

Required skills

highly developed communication skills to:

evaluate an organisation's reconstruction environment and requirements, using questioning of personnel, management and external stakeholders for confirmation

negotiate complex reconstruction options and actions

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research skills for accessing and managing financial services information

well-developed literacy skills for analysingfinancial information and preparing financial reconstruction options

well-developed numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using integrated financial systems, spreadsheets and databases and internet information

learning skills to maintain knowledge of reconstruction best practice principles, processes and procedures

problem solving skills to identify reconstruction planning and implementation issues that have the potential to impact on organisations and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule reconstruction activity monitoring and reporting

Required knowledge

principles of law as it relates to insolvency management including:

trade practices and corporation law

Taxation Assessment Acts

Workplace Relations Act

Australian Consumer and Competition Commission (ACCC) regulations

Privacy Act

application of depreciation methods allowed by tax authorities

duties and responsibilities of administrators and liquidators

duties and responsibilities of auditors

ethical considerations for the handling of financial reconstruction such as:

conflict of interests

confidentiality

disclosure requirements

principles of valuation and processes for asset disposal

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 ability to:

access and comply with relevant legislation

apply knowledge of assets and liability classification to evaluate options for reconstruction

establish reconstruction timelines and objectives and monitor progress

plan for disaster.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to an integrated financial software system and data.

Method of assessment

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

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Assets and liabilities may include:

cash accounts

loans, leases and debts

personnel

plant and equipment

property investments

shares, bonds and securities.

Advantages and disadvantages may include:

falling market reputation

industrial unrest

lack of financing

product quality

removal of restrictive practices.

Sources of financing may include:

'plough back'

asset sales

bank borrowing:

long-term

short-term

franchising

government equity injections

money market

new share releases

venture capital.

Short and long-term financial obligations may include:

debt retirement

dividends

periodic payments on:

leases

loans

other

salaries

superannuation

taxation payments.

Client objectives may include:

administrative efficiency

asset development

financial consolidation

higher levels of investment returns

improved cash flows

reduction in tax liabilities.

Milestones may include:

compliance with scheduled payment dates

debt reduction targets

profits and losses

reports:

quarterly

half-yearly

annually.

Stakeholders may include:

clients

employees

financial institutions

managers and company officers such as:

company directors

boards of management

suppliers.

Reporting responsibilities may include:

administrator reports

availability of credit

commercial viabilities

compliance requirements

valuations.

Implementation schedules may include:

budgeting periods

consultation schedules

evaluation of commercial viability

liquidation dates

repayment schedules.

Operational data may include:

interest payments

salaries

sales

taxation liabilities such as:

sales tax

State government charges

other.

Delays may include:

court orders

creditor default

identification of ownership

industrial action

taxation assessments.

Triggers may include:

court action

falling revenues

industrial unrest

non-payment of debts

withdrawal of financing.

Unit sector

Accounting

This unit contains employability skills.