Unit of competency Outline
Date retreived
23/07/2026 10:34 AM AWST
23/07/2026 10:34 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Respond to corporate insolvency situations
Respond to corporate insolvency situations
Unit of competency
National Code
FNSCRD505A
FNSCRD505A
State Code
D4092
D4092
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
080101 - Accounting
Original Release Date
29/07/2014
Nominal Hours
35
Description
This unit describes the performance outcomes, skills and knowledge required to respond to corporate insolvency and its impact on creditors, and to determine actions to be undertaken in an insolvency situation.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Monitor the status of the corporate insolvency and analyse potential risk
- 1.1. Factors that may contribute to a possible corporate insolvency situation and the risk factors to the creditor organisation are assessed
- 1.2. Impact of actions that may be taken by a liquidator, administrator, receiver, or other third party is analysed before consideration of action
2. Determine appropriate action
- 2.1. Corporate insolvency actions are evaluated in accordance with statutory rights and obligations
- 2.2. Appropriate claims, proof of debt and Personal Property Securities (PPS) procedures are completed in accordance with statutory and regulatory requirements
- 2.3. Appropriate claims against third parties are evaluated and initiated
3. Review the circumstances which led to the corporate insolvency situation
- 3.1. Causes for business failure are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure
- 3.2. Outcome of review is implemented as required
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.
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.
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
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
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ73 | FNSCRD505 | Respond to corporate insolvency situations | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D723 | FNS51511 | Diploma of Credit Management | Qualification |
| D725 | FNS51811 | Diploma of Financial Services | Qualification |