Unit of competency Outline

Date retreived
23/07/2026 9:49 AM AWST

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Evaluate organisation's financial performance

Evaluate organisation's financial performance

Unit of competency
National Code
FNSACC608
State Code
AUQ20
TGA Status
Current
DTWD Status
Approved
Current Release Number
3.00
Current Release Date
23/09/2022
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
55
Description
This unit describes the skills and knowledge required to evaluate returns to operations, determine short-term and long-term needs, and evaluate an organisation’s financial position and performance.It applies to experienced individuals who use specialised knowledge and skills to evaluate complex financial information and make recommendations relevant to strategic organisational activity.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Evaluate returns to operations
  • 1.1 Trend cash flow and profitability patterns to identify current position and expected returns from investments and projected operations
  • 1.2 Disaggregate averaged returns to assess strengths and weaknesses in organisational performance
  • 1.3 Evaluate investment returns against risk, profit and capital budget requirements
2. Determine short-term and long-term needs
  • 2.1 Identify resources required by organisation to meet short-term and long-term obligations, and cost using standard financial analysis techniques
  • 2.2 Establish and review financial priorities based on reported performance and identified trends, organisational objectives and expected returns to operations and investments
  • 2.3 Review financial options and conduct analysis of range of possible assets and liabilities to optimise capital mix to support operations and trading need
  • 2.4 Evaluate and document organisational policy and procedures for expenditures and investments to ensure relevance to changing personnel profiles
  • 2.5 Analyse debt to equity targets in terms of organisation’s expected performance and establish in line with organisational objectives using standard accounting techniques
3. Review performance
  • 3.1 Ensure forecasts made are justifiable given observed trends, information, events and assumptions, with standard errors calculated to produce levels of accuracy suitable for planning purposes
  • 3.2 Regularly review forecasts in line with actual performance and alternative sources of information
  • 3.3 Assess risk strategies for long-term viability and harmonise with short-term goals and obligations
No information
No information
Replaces
State Code National Code Title Type
D4053 FNSACC608A Evaluate organisation's financial performance Unit of competency
State Code National Code Title Type
BDQ1 FNS60217 Advanced Diploma of Accounting Qualification
AWD8 FNS60215 Advanced Diploma of Accounting Qualification
BHW9 FNS60222 Advanced Diploma of Accounting Qualification