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Evidence Guide: FNSACC608A - Evaluate organisation's financial 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

 

FNSACC608A - Evaluate organisation's financial performance

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

Evaluate returns to operations

  1. Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations
  2. Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance
  3. Investment returns are evaluated against risk, profit and capital budget requirements
Cash flow and profitability patterns are trended to identify current position and expected returns from investments and projected operations

Completed
Date:

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Averaged returns are disaggregated to assess strengths and weaknesses in organisational performance

Completed
Date:

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Investment returns are evaluated against risk, profit and capital budget requirements

Completed
Date:

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Determine short-term and long-term needs

  1. Resources required by organisation to meet short-term and long-term obligations are identified and costed using standard financial analysis techniques
  2. Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments
  3. Financial options are reviewed and analysis of a range of possible assets and liabilities to optimise the capital mix is conducted to support operations and trading need
  4. Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles
  5. Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques
Resources required by organisation to meet short-term and long-term obligations are identified and costed using standard financial analysis techniques

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial priorities are established and reviewed based on reported performance and identified trends, organisational objectives and expected returns to operations and investments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial options are reviewed and analysis of a range of possible assets and liabilities to optimise the capital mix is conducted to support operations and trading need

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organisational policies and procedures for expenditures and investments are evaluated to ensure relevance to changing personnel profiles

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Debt to equity targets are analysed in terms of organisation's expected performance and established in line with organisational objectives using standard accounting techniques

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review performance

  1. Forecasts made are justifiable given observed trends, information, events and assumptions with standard errors calculated to produce levels of accuracy suitable for planning purposes
  2. Forecasts are reviewed regularly in line with actual performance and alternative sources of information
  3. Risk strategies are assessed for long-term viability and harmonised with short-term goals and obligations
Forecasts made are justifiable given observed trends, information, events and assumptions with standard errors calculated to produce levels of accuracy suitable for planning purposes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Forecasts are reviewed regularly in line with actual performance and alternative sources of information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk strategies are assessed for long-term viability and harmonised with short-term goals and obligations

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:

use standard financial analysis techniques and accounting techniques plus organisational policies and procedures to evaluate returns to operations

determine long and short-term organisational needs

review financial performance across an organisation.

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 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:

evaluate an organisation's financial performance, using questioning of personnel and management for confirmation

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 performance indicators and preparing forecasts, financial options and clear written advice

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 organisational performance best practice principles, processes and procedures

problem solving skills to identify performance 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 financial performance monitoring and reporting

Required knowledge

techniques for developing long and short-term plans

undertaking a SWOT analysis

duties of auditors

ethical considerations for compliance purposes

financial legislation such as:

taxable transactions

reporting requirements

principles of cash flow and budgetary control

principles of cost-benefit analysis and use of forecasting techniques

principles of internal control including statutory requirements

principles of risk management

organisational structures and lines of management authority

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.

Strengths and weaknesses may include:

budget estimates

cash flow schedules

financial monitoring

internal control compliance

revenue forecasts

unit costs.

Short-term and long-term obligations may include:

capital structure decisions

debt retirement

dividends

periodic payments such as:

leases

loans

salaries

superannuation

taxation payments.

Standard financial analysis techniques may include:

'what if' analysis

bivariate and multivariate analysis

break-even analysis

cost-benefit analysis

time series.

Financial priorities may include:

cost minimisation:

capital

recurrent costs

periodic monitoring and transparency of expenditure

rates of returns

revenue estimates

sales targets

Investments may include:

debentures

interest bearing accounts

plant and equipment

preference shares

property

shares and securities.

Financial options may include:

adjustment of borrowings

asset liquidation

budget absorption

cost recoveries

equity injections

expenditure reprioritisation

long-term investments

purchases.

Assets and liabilities may include:

cash

investments

loans, leases and debts

plant and equipment

property investments

shares, bonds and securities.

Organisational policies and procedures may include:

financial analysis assessments

financial management manuals

price and exchange parameters

recording and filing systems

reporting requirements

standard financial analysis techniques.

Standard accounting techniques may include:

break-even analysis

deprival asset valuations

direct allocation

discounted cash flows

impact statements

pay-back periods

pro rata and percentage apportionment

rates of return.

Risk strategies may include:

capital structure

comparative analysis

decision making authorities

forecasting

periodic reporting

policy statements

quantification of risks.