Unit of competency Outline
Date retreived
22/07/2026 7:37 AM AWST
22/07/2026 7:37 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.
Prepare financial forecasts and projections
Prepare financial forecasts and projections
Unit of competency
National Code
FNSORG506A
FNSORG506A
State Code
D4267
D4267
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
15/04/2014
Field of Education
081101 - Banking And Finance
Original Release Date
15/04/2014
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to plan and schedule a financial forecast or projection, identify assumptions and parameters, and collect, consolidate and analyse data to make forecasts or projections before documenting results and obtaining approval.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Plan preparation timetable
- 1.1. All critical milestones are identified to ensure financial forecasts and projections can be prepared within timeframes
- 1.2. Business plans, financial forecasting and processing systems are reviewed to identify timeframes and parameters and any potential conflicts
2. Identify assumptions and parameters
- 2.1. Business plans and exception reports are reviewed to identify and resolve conflicts in assumptions
- 2.2. Assumptions and parameters are reviewed to ensure compliance with organisation policy and procedures
- 2.3. Current and historical financial reports are analysed to establish trends and the external environment examined to gain an objective overview
3. Issue instructions and relevant aids for preparation of forecasts and projections
- 3.1. Instructions issued are clear and unambiguous and comply with organisation format to ensure ease of use and consistency of interpretation
- 3.2. Types of business are identified to enable effective financial models to be selected with training provided to ensure comprehensive understanding and effective use of the models by users
4. Collect, consolidate, model and analyse data
- 4.1. Data is reviewed to ensure consistency with actual results and model used with analysis results documented in a clear and unambiguous way
- 4.2. Data collected are reliable, valid, complete and comprehensive
- 4.3. Processing is completed in accordance with established timetable and data are consolidated in a logical structured format that enables ready analysis
5. Document results and obtain approval
- 5.1. Results are documented in a clear and understandable manner and in a format suitable to meet needs of target users
- 5.2. All approvals are obtained in accordance with management objectives, financial and organisation policies and the results distributed within the timetable
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.
Forecasts may include:
capital expenditure
claims
investment income
long-term (e.g. 5 year)
management expenses
premiums
reinsurance levels
short-term (e.g. 1 year).
Organisation policy and procedures may include:
computer system documentation
internal control guidelines
operations manuals.
Current and historical financial reports may include:
change in renewal date of policies
commission and charges ratios
customer retention
loss reports
new business reports.
External environment may include:
activities of competitors
consumer activity
finance markets
government policy
inflation rates
market place
market conditions.
Financial models may include:
account structure at summary level and key ratios
alternative scenarios
cost or profit centre analysis
format for calculations
standalone or be driven from computer ledgers
sensitivity analysis
simulations.
Users may include:
Australian Bureau of Statistics (ABS)
banks
branch managers
claims managers
directors
distribution stream managers
finance section
product managers
regional or state managers
shareholders
underwriting managers.
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.
Forecasts may include:
capital expenditure
claims
investment income
long-term (e.g. 5 year)
management expenses
premiums
reinsurance levels
short-term (e.g. 1 year).
Organisation policy and procedures may include:
computer system documentation
internal control guidelines
operations manuals.
Current and historical financial reports may include:
change in renewal date of policies
commission and charges ratios
customer retention
loss reports
new business reports.
External environment may include:
activities of competitors
consumer activity
finance markets
government policy
inflation rates
market place
market conditions.
Financial models may include:
account structure at summary level and key ratios
alternative scenarios
cost or profit centre analysis
format for calculations
standalone or be driven from computer ledgers
sensitivity analysis
simulations.
Users may include:
Australian Bureau of Statistics (ABS)
banks
branch managers
claims managers
directors
distribution stream managers
finance section
product managers
regional or state managers
shareholders
underwriting managers.
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:
identify, interpret and comply with organisation policies and procedures regarding preparing 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 results and obtain approval where required.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services 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 an integrated financial software system and data
access to organisational policies and procedures documentation.
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:
identify, interpret and comply with organisation policies and procedures regarding preparing 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 results and obtain approval where required.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services 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 an integrated financial software system and data
access to organisational policies and procedures documentation.
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
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9776 | FNSICORG517B | Prepare financial forecasts and projections | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS37 | FNSORG506 | Prepare financial forecasts and projections | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D707 | FNS40611 | Certificate IV in Accounting | Qualification |
| S718 | FNS50210 | Diploma of Accounting | Qualification |
| D725 | FNS51811 | Diploma of Financial Services | Qualification |
| W814 | ICT50310 | Diploma of Telecommunications Management | Qualification |
| J822 | ICT50513 | Diploma of Telecommunications Planning and Design | Qualification |