Elements and Performance Criteria

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.
Calculating depreciation may include:
reducing balance method
straight-line method
Expense accounts may include:
distribution expenses
electricity
freight inward and outward
insurance
interest paid
rates
rent paid
telephone and fax
wages and salaries
Revenue accounts may include:
commission received
interest received
rent received
Prepayments and accruals may include:
accrued expenses
accrued revenue
prepaid expenses
prepaid revenue
Bad and doubtful debts may include:
calculating provision for doubtful debts
writing off bad debts against provision for doubtful debts
Inventories may include:
goods for resale
stationery and other office supplies
Final accounts may include:
profit and loss
trading
Revenue statement comprises:
cost of goods sold if applicable
gross profit
operating net profit
unclassified adjusted expenses and revenue
Reporting period may include:
as determined in organisational procedures
financial year
Balance sheet comprises:
narrative or T format
unclassified assets and liabilities

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 following is essential:
preparing financial reports
applying the Australian Accounting and Auditing Standards
applying double-entry principles.
Context of and specific resources for assessment
Assessment must ensure:
access to office equipment and resources, such as:
calculator
computer equipment and relevant software
Australian Accounting and Auditing Standards
access to samples of financial data
access to workplace reference materials such procedural manuals and company policy.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
analysis of responses to case studies and scenarios
demonstration of techniques
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of authenticated documents from the workplace or training environment
oral or written questioning to assess knowledge ofaccounting procedures and techniques.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
other financial administration units.