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Evidence Guide: FNSORG506 - Prepare financial forecasts and projections

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

 

FNSORG506 - Prepare financial forecasts and projections

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

Plan preparation timetable

  1. Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes
  2. Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts
Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify assumptions and parameters

  1. Review business plans and exception reports to identify and resolve conflicts in assumptions
  2. Review assumptions and parameters to ensure compliance with organisational policy and procedures
  3. Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview
Review business plans and exception reports to identify and resolve conflicts in assumptions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review assumptions and parameters to ensure compliance with organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Issue instructions and relevant aids for preparation of forecasts and projections

  1. Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation
  2. Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models
Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Collect, consolidate, model and analyse data

  1. Review data to ensure consistency with model used and document analysis results clearly
  2. Collect reliable, valid, complete and comprehensive data
  3. Process and consolidate data in logical structured format that enables ready analysis according to established timetable
Review data to ensure consistency with model used and document analysis results clearly

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Collect reliable, valid, complete and comprehensive data

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Process and consolidate data in logical structured format that enables ready analysis according to established timetable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document results and obtain approval

  1. Document results clearly in suitable format that meets needs of target users
  2. Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable
Document results clearly in suitable format that meets needs of target users

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Plan preparation timetable

1.1 Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes

1.2 Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts

2. Identify assumptions and parameters

2.1 Review business plans and exception reports to identify and resolve conflicts in assumptions

2.2 Review assumptions and parameters to ensure compliance with organisational policy and procedures

2.3 Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview

3. Issue instructions and relevant aids for preparation of forecasts and projections

3.1 Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation

3.2 Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models

4. Collect, consolidate, model and analyse data

4.1 Review data to ensure consistency with model used and document analysis results clearly

4.2 Collect reliable, valid, complete and comprehensive data

4.3 Process and consolidate data in logical structured format that enables ready analysis according to established timetable

5. Document results and obtain approval

5.1 Document results clearly in suitable format that meets needs of target users

5.2 Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Plan preparation timetable

1.1 Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes

1.2 Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts

2. Identify assumptions and parameters

2.1 Review business plans and exception reports to identify and resolve conflicts in assumptions

2.2 Review assumptions and parameters to ensure compliance with organisational policy and procedures

2.3 Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview

3. Issue instructions and relevant aids for preparation of forecasts and projections

3.1 Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation

3.2 Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models

4. Collect, consolidate, model and analyse data

4.1 Review data to ensure consistency with model used and document analysis results clearly

4.2 Collect reliable, valid, complete and comprehensive data

4.3 Process and consolidate data in logical structured format that enables ready analysis according to established timetable

5. Document results and obtain approval

5.1 Document results clearly in suitable format that meets needs of target users

5.2 Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable

Evidence of the ability to:

comply with organisational policy and procedures that relate to the preparation of financial forecasts and projections

apply standard accounting principles and techniques

accurately identify assumptions and parameters of forecasts

collect, consolidate, model and analyse data in a timely manner

document forecasts and projections, and obtain approval where required.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

describe relevant financial industry codes of practice

explain financial forecasting techniques, models and best practice

identify key users or audience for financial forecasts and projections

outline factors in the external environment that can impact on financial forecasts

outline the relevance of historical financial reports to forecasting

identify and interpret relevant organisational policy and procedures

explain key requirements of relevant legislation and regulations that influence the financial services industry.