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Evidence Guide: FNSCRD505A - Respond to corporate insolvency situations

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

 

FNSCRD505A - Respond to corporate insolvency situations

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

Monitor the status of the corporate insolvency and analyse potential risk

  1. Factors that may contribute to a possible corporate insolvency situation and the risk factors to the creditor organisation are assessed
  2. Impact of actions that may be taken by a liquidator, administrator, receiver, or other third party is analysed before consideration of action
Factors that may contribute to a possible corporate insolvency situation and the risk factors to the creditor organisation are assessed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Impact of actions that may be taken by a liquidator, administrator, receiver, or other third party is analysed before consideration of action

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine appropriate action

  1. Corporate insolvency actions are evaluated in accordance with statutory rights and obligations
  2. Appropriate claims, proof of debt and Personal Property Securities (PPS) procedures are completed in accordance with statutory and regulatory requirements
  3. Appropriate claims against third parties are evaluated and initiated
Corporate insolvency actions are evaluated in accordance with statutory rights and obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate claims, proof of debt and Personal Property Securities (PPS) procedures are completed in accordance with statutory and regulatory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate claims against third parties are evaluated and initiated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review the circumstances which led to the corporate insolvency situation

  1. Causes for business failure are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure
  2. Outcome of review is implemented as required
Causes for business failure are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Outcome of review is implemented as required

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:

interpret and apply the principles of corporate insolvency to insolvency actions

accurately complete lodgement of claims and proof of debt, enforcement of security and legal proceedings documentation.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services other organisations that offer credit facilities 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 relevant organisational policies and procedures and legislation.

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 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 and confirm insolvency situations and to clarify this using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences, comprehension, age possible disability and language level of the customer

numeracy and IT skills to:

perform insolvency related calculations

use relevant software, spreadsheets and databases

access web based information services

research and analysis for accessing, interpreting and managing business and personal information to determine insolvency risk

well-developed interpersonal skills to deal effectively with insolvency stakeholders

judgement skills for making insolvency risk determinations

organisational skills, including the ability to plan and sequence work

Required knowledge

current knowledge of relevant legislative requirements

developments in the credit management sector and company policy

full range of credit options within legal requirements

relevant aspects of trust law

relevant industry indicators

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.

Insolvency situations may include

controllerships

court liquidations

deeds of company arrangements

liquidations

receiverships

schemes of company arrangements

voluntary administrations.

Potential risk factors may include:

Australian Bureau of Statistics (ABS) information

Australian Securities and Investments Commission (ASIC) information

commercial repercussions

commercial return versus outlay cost for recovery

industry trade bureau information

Insolvency and Trustee Service Australia (ITSA) information

voidable transactions.

Statutory and legislative requirements may include:

appropriate sections of the Income Tax Assessment Act

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

Corporations Act

Fair Trading Acts

National Consumer Credit Protection Acts

Partnership Act

Personal Property Securities Act

Privacy Act

Sales of Goods Act

Trade Practices Act

Small Debts Court Act or equivalent.