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Evidence Guide: FNSACC607A - Evaluate business performance

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSACC607A - Evaluate business performance

What evidence can you provide to prove your understanding of each of the following citeria?

Analyse trends in performance

  1. Data relating to program and organisational performance is gathered and analysed using standard accounting techniques to identify past, current and future performance
  2. Variations from targets and divergences from trends are researched and evaluated to determine margins of errors and any repeating patterns
  3. Trends in performance are assessed in terms of organisational short-term and long-term objectives
Data relating to program and organisational performance is gathered and analysed using standard accounting techniques to identify past, current and future performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Variations from targets and divergences from trends are researched and evaluated to determine margins of errors and any repeating patterns

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Trends in performance are assessed in terms of organisational short-term and long-term objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop performance indicators

  1. Performance indicators are developed that link organisational processes, resource use and organisational objectives to environmental factors
  2. Performance indicators are developed using processes that are planned, inclusive and realistic within available timeframes and resources
  3. Components of performance indicators are regularly reviewed for relevance against performance trends and organisational capacities
Performance indicators are developed that link organisational processes, resource use and organisational objectives to environmental factors

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Performance indicators are developed using processes that are planned, inclusive and realistic within available timeframes and resources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Components of performance indicators are regularly reviewed for relevance against performance trends and organisational capacities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify options for improvement

  1. Factors inhibiting performance are identified, minimised or eliminated and organisational programs are reviewed to include factors that promote performance in line with available resources
  2. Value is added through the use of standard financial management techniques such as capital budgeting
  3. Communication strategies are developed and implemented to facilitate the extension of improvement options in line with operational goals and needs
Factors inhibiting performance are identified, minimised or eliminated and organisational programs are reviewed to include factors that promote performance in line with available resources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Value is added through the use of standard financial management techniques such as capital budgeting

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communication strategies are developed and implemented to facilitate the extension of improvement options in line with operational goals and needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

apply standard accounting techniques to analyse trends in business performance

develop performance indicators and identify options for improvement

establish organisational objectives, policies and procedures.

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

corporate governance documentation and organisational operational policies and procedures information.

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 which may include formal examinations

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

well-developed communication skills to:

determine current business performance and improvement requirements using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

high level research skills for accessing and managing information and evaluating organisational structures and lines of management authority

literacy skills for analysingorganisational performance and preparing clear written advice for clients

numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using spreadsheets and databases and internet information

learning skills to maintain knowledge of best practice organisational performance processes and procedures

problem solving skills to identify any business performance issues that have the potential to impact on clients and to develop options to resolve these issues when they arise

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

Required knowledge

ethical considerations such as:

conflict of interests

confidentiality

disclosure requirements

options, methods and practices for deductions, benefits and depreciations

principles and methods of valuation

principles of capital budgeting analysis and investment analysis

principles of cost-benefit analysis and use of forecasting techniques

Range Statement

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.

Data may include:

Australian Bureau of Statistics (ABS) economic data

budgets and forecasts

capital equipment and development plans

credit ratings

financial markets monitoring services

financial statements and reports

investment plans

market valuations.

Standard accounting techniques may include:

capital budgeting

deprival asset valuations

direct allocation

discounted cash flows

impact statements

pay-back periods

pro rata and percentage apportionment

rates of return

ratio analysis

working capital management.

Targets may include:

asset turnover

budgeted expenditures

budgeted revenue

capital expenditure management

cost of capital

profits and losses

rate of investment returns

sales

working capital levels.

Short and long term objectives may include:

asset management

budgetary targets:

quarterly

half-yearly

annually

client development

investment levels and returns

investment realisations

monthly cash flows

profit growth

sales and revenue targets.

Performance indicators may include:

compliance with scheduled payment dates

debt reduction targets

debt-to-equity ratios

investment levels

profits and losses

reports:

daily

weekly

monthly

quarterly

half yearly

annually

target cost of capital.

Environmental factors may include:

community service obligations

competitors' behaviour

consumer demand

cost of debt

environmental sustainability factors

government financial policies

inflation

market share

skills shortages.

Factors inhibiting performance may include:

client opinions and interface

financial management techniques and tools

financial monitoring

information management systems

internal procedures

market share

staff skills.

Communication strategies may include:

documented procedures and staff manuals

memos

newsletters

staff meetings

workshops.