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Evidence Guide: FNSACCT608B - 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

 

FNSACCT608B - 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:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

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Determine short and long term needs

  1. Resources required by organisation to meet short 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 review and analyse a range of possible assets and liabilities to optimise the capital mix required 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 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 review and analyse a range of possible assets and liabilities to optimise the capital mix required 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 are justifiable given observed trends, information, events and assumptions
  2. Standard errors are calculated to produce levels of accuracy suitable for planning purposes
  3. Forecasts are reviewed regularly in line with actual performance and alternative sources of information
  4. Risk strategies are assessed for long term viability and harmonised with short term goals and obligations
Forecasts are justifiable given observed trends, information, events and assumptions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Standard errors are 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

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.

Required Skills and Knowledge

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

Range Statement

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