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Evidence Guide: SITXFIN401 - Interpret financial information

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

 

SITXFIN401 - Interpret financial information

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

Access and interpret financial information.

  1. Identify and interpret the range of financial information and reports required for the organisation to monitor business performance.
  2. Interpret financial information and reports applicable to operational or departmental activities.
Identify and interpret the range of financial information and reports required for the organisation to monitor business performance.

Completed
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Interpret financial information and reports applicable to operational or departmental activities.

Completed
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Use and provide financial information.

  1. Review financial information for impacts on operational activities and take action according to individual empowerment.
  2. Routinely provide information on operational or departmental financial activities.
Review financial information for impacts on operational activities and take action according to individual empowerment.

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Routinely provide information on operational or departmental financial activities.

Completed
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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 a diverse range of financial information and reports used to monitor overall business performance

provide financial information on operational or departmental financial activities

use correct financial terminology

integrate knowledge of the use of financial information and reports in monitoring overall business performance.

Context of and specific resources for assessment

Assessment must ensure use of:

a real or simulated tourism, hospitality or event industry business operation or activity for which financial information can be interpreted

computers, printers and accounting software packages currently used by the tourism, hospitality and event industries

financial data and reports.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

projects and activities that allow assessment of the individual’s ability to interpret financial information and reports

review of information, prepared by the individual, on operational or departmental financial activities

written or oral questioning to assess knowledge of accounting concepts and terminology

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

BSBPMG501A Manage projects

SITXFIN402 Manage finances within a budget

SITXMGT401Monitor work operations.

Required Skills and Knowledge

Required skills

literacy skills to:

read and interpret a wide range of financial documents

write explanatory notes to accompany financial information

numeracy skills to interpret and use financial records and to calculate entries within financial reports

planning and organising skills to prepare information within designated timelines

problem-solving skills to identify and resolve financial reporting discrepancies

technology skills to use accounting software packages.

Required knowledge

for the specific industry sector and organisation:

financial terminology, including average spend, cover, wastage and nett costs

reporting periods, including different financial years observed by different businesses

the features and functions of accounting software programs used to manage financial operations

use of financial information and reports in monitoring overall business performance

key elements of financial recordkeeping and key terminology, including:

ledgers, subsidiary ledgers and journals

transactions, receipts and disbursements

invoices, accounts payable, debtors and creditors

cash flow

key elements of accounting and how it provides information for business management, including:

charts of accounts and account categories, such as assets, liabilities, equity, cost of sales, income and expense

basic rules for doubleentry accounting and the concept of debits and credits

accrual versus cash accounting

profit and loss statements and balance sheets as key financial statements used to measure business performance, including their role; how these reports are generated; and the format, features and key information

reconciliations, including purpose, different types of reconciliation and the impact of unpresented cheques, bank charges, direct debits and credits on reconciliations

concept of costing, including fixed and variable costs

accounting for and reporting Goods and Services Tax (GST).

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.

Financial informationmay include:

account summaries and balances

balance sheets

bank deposit documentation

bank statements

banking summaries

business activity statements

cheque books

credit card transaction statements

invoices

journal entries

merchant statements

merchant summaries

profit and loss statements

trial balance.

Reports may include those for:

budgets

cash flow

covers

expenditure

labour and wages

occupancy rates

purchases

receivables

sales

stock

transactions

transactions exempted

units sold

variance

wastage.

Operational or departmental financial activities may relate to:

average customer spend

daily, weekly and monthly transactions

departmental expenditure, including:

labour

stock purchased

wastage

departmental income, including:

covers and gross income

commission earnings

occupancy and gross income

sales

outstanding accounts:

payable

receivable

quotations realised to sales

sales performance

stock levels

variance from budget.