Elements and Performance Criteria

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.
Standard accounting techniques may include:
discounted cash flows
Internal Rate of Return, Net Present Value
deprival asset valuations
rates of return
pay back break even periods
impact statements
pro-rata and percentage apportionment
direct and indirect allocation
Datamay include:
budgets and forecasts
financial statements and reports
market valuations
Australian Bureau of Statistics (ABS) economic data
financial markets monitoring services (eg Reuters)
credit ratings
reserve bank of Australia long term bond rates
Assets and liabilities may include:
property investments
shares, debentures, securities
loans, leases, debts
plant and equipment
employee liabilities (eg long service leave)
cash
computer software
stock and account receivable
Valuation criteria may include:
depreciation rate
market estimates
purchase prices
repayment costs
director's valuation
asset backing
earning capacity
past profits

expected future profits
receiver's valuation
Environmental factors may include:
economic conditions and trends
external risks
competitors' behaviour
market share
consumer demand
cost of capital
skills shortages
government financial policies
factor markets
Long and short term periods may include:
monthly accounting
quarterly reports
half yearly budgets
annual reporting
tri-annual funding
five year plans
Strategic goals may include:
survival
short term profit
long term profit
liquidity
solvency
growth
market share
Sources of financing may include:
'plough back'
money market
asset sales
bank borrowing (long and short term)
franchising
venture capital
new share releases
government equity injections
debentures
Short and long term objectives may include:
debt retirement
salaries and other employee obligations
periodic payments (eg leases, loans)
taxation payments
superannuation
dividends
Internal control proceduresmay include:
identification, measurement and recording of revenue, assets, expenditure, liabilities and equity
safeguarding and insurance of assets
decision making authorities
accuracy in valuations
transparency in financial reporting
risk management strategies
corporate governance requirements
control of cash

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 accounting techniques
knowledge of internal control procedures
knowledge of organisation's strategic goals
knowledge of environmental factors
ability to review data
ability to determine options
ability to implement strategic strategies
ability to evaluate outcomes
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.