Unit of competency Outline

Date retreived
22/07/2026 7:50 PM AWST

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Interpret financial information

Interpret financial information

Unit of competency
National Code
SITXFIN003A
State Code
S6522
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
01/01/2011
View on TGA
State Implementation and Classification
Approved Date
10/03/2011
Field of Education
080101 - Accounting
Original Release Date
10/03/2011
Nominal Hours
20
Description
This unit describes the performance outcomes, skills and knowledge required to interpret the types of financial information used by operational supervisors and managers in their day-to-day work activities. The unit focuses on understanding key financial terminology, different types of financial reports and on how financial information is used in the management of a business. This unit is therefore related to other financial units such as: SITXFIN004A Manage finances within a budget, SITXFIN005A Prepare and monitor budgets, and SITXFIN008A Manage financial operations.
Notes
Elements and Performance Criteria
1 Access and interpret financial information.
  • 1.1 Identify and use relevant business performance indicators and benchmarks for decision-making purposes.
  • 1.2 Identify the range of financial information and reports required to monitor business performance effectively on a day-to-day operational management level.
  • 1.3 Access and review relevant financial information at appropriate times according to organisation policy and financial reporting periods.
  • 1.4 Interpret financial information correctly.
2 Apply financial information to work activities.
  • 2.1 Identify financial information that applies to particular areas of work operation.
  • 2.2 Review financial information in terms of its impact on day-to-day work operations and take action accordingly.
  • 2.3 Share appropriate financial information with colleagues in a timely manner.
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 in the performance criteria is detailed below.

Financial information:
must include:
source documents
journal entries
transaction reports
account summaries and balances
balance sheets
profit and loss statements
invoices
budget reports
expenditure reports (labour or non-labour)
may include:
trial balance
receivable reports
purchase summary reports
stock reports
variance reports
wastage reports
sales reports
supporting reports, such as covers, occupancy rates, staff costs and units sold
business activity statements
labour and wages reports
cash flow reports
bank statements
bank deposit documentation
merchant statements
transaction exemption reports
cheque books
credit card transaction statements
banking summaries
merchant summaries.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
understanding of the accounting process and of key accounting terminology
ability to interpret financial information and determine the relationship between the information and the performance of a business.


Context of and specific resources for assessment
Assessment must ensure:
use of commercially realistic financial data and reports.


Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
case studies that allow the candidate to report on business performance through analysis of financial reports
oral or written questions to assess knowledge and understanding of accounting concepts and terminology
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
SITXFIN004A Manage finances within a budget
SITXFIN005A Prepare and monitor budgets
SITXFIN008A Manage financial operations.


Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.
Replaces
State Code National Code Title Type
E1985 THHGFA06A Interpret financial information Unit of competency
Replaced By
State Code National Code Title Type
WF774 SITXFIN401 Interpret financial information Unit of competency