Elements and Performance Criteria

The Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available.

Which financial reports may be relevant to this standard?
Financial reports will include annual taxation reports and reports generated within the business including profit and loss, sales reports, cash flow forecasts, transaction reports and balance sheets.

What management reports may be relevant to this competency standard?
Management reports may be computer or non-computer based and will include non-tax related financial and production reports customised for monitoring the business.

What breakdowns of profit and loss may be relevant to this competency standard?
Relevant breakdowns of profit and loss include EBIT, profit before interest, owners allowance and drawings.

Which financial reports may be relevant to this standard?
Financial reports will include annual taxation reports and reports generated within the business including profit and loss, sales reports, cash flow forecasts, transaction reports and balance sheets.

What management reports may be relevant to this competency standard?
Management reports may be computer or non-computer based and will include non-tax related financial and production reports customised for monitoring the business.

What breakdowns of profit and loss may be relevant to this competency standard?
Relevant breakdowns of profit and loss include EBIT, profit before interest, owners allowance and drawings.

What evidence is required to demonstrate competence for this standard as a whole?
Competence in analysing business performance requires evidence that an analysis of business performance has been carried out for an enterprise and that sound strategies for improving business performance have been identified. The skills and knowledge required to analyse business performance must be transferable to a range of work environments and contexts. For example, this could include different enterprises, rural commodities, and financial and marketing climates.
What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this unit are listed below:

financial reports
financial analysis tools
performance benchmarking
issues related to production efficiency and marketing
SWOT analysis and developing business strategies.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, some complementary skills are required. These skills include the ability to:

analyse financial reports
use financial analysis tools
identify profit drivers for the enterprise
develop strategies for improving business performance.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this unit are listed below:

financial reports
financial analysis tools
performance benchmarking
issues related to production efficiency and marketing
SWOT analysis and developing business strategies.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, some complementary skills are required. These skills include the ability to:

analyse financial reports
use financial analysis tools
identify profit drivers for the enterprise
develop strategies for improving business performance.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

There are a number of processes that are learnt throughout work and life, which are required in all jobs. They are fundamental processes and generally transferable to other work functions. Some of these are covered by the key competencies, although others may be added. The questions below highlight how these processes are applied in this competency standard. Following each question a number in brackets indicates the level to which the key competency needs to be demonstrated where 0 = not required, 1 = perform the process, 2 = perform and administer the process and 3 = perform, administer and design the process.
Communicating ideas and information
Through record keeping on business performance. (3)

Communicating ideas and information
Through record keeping on business performance. (3)

Collecting analysing and organising information
Through interpretation of taxation records, enterprise accounts and management records. (3)

Collecting analysing and organising information
Through interpretation of taxation records, enterprise accounts and management records. (3)

Planning and organising activities
By the use of financial tools in undertaking the analysis. (3)

Planning and organising activities
By the use of financial tools in undertaking the analysis. (3)

Working with others and in teams
Through consultation with other stakeholders in analysing business performance. (3)

Working with others and in teams
Through consultation with other stakeholders in analysing business performance. (3)

Using mathematical ideas and techniques
Through calculations of gross margins. (3)

Using mathematical ideas and techniques
Through calculations of gross margins. (3)

Solving problems
Through use of financial analysis tools. (3)

Solving problems
Through use of financial analysis tools. (3)

Using technology
Through use of compute-based financial software applications. (3)

Using technology
Through use of compute-based financial software applications. (3)