List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
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 |
Evidence of the ability to:
evaluate returns to operations using standard financial analysis and accounting techniques, and following organisational policy and procedures
determine long-term and short-term organisational needs
review and monitor financial performance across an organisation
assess risk strategies and make recommendations regarding financial performance.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
discuss techniques for developing long-term and short-term plans, and determining financial priorities
explain the purpose and key features of standard financial analysis techniques and business review processes
explain the role of audits in evaluating financial performance
discuss ethical considerations in evaluating financial performance
identify and explain the key features of financial legislation relating to the evaluation of financial performance
identify and explain the key principles of:
cash flow and budgetary control
cost–benefit analysis and use of forecasting techniques
internal control, including statutory requirements
outline the key features of organisational structures and lines of management authority
discuss strategies for risk identification and management.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:
common office equipment, technology, software and consumables
an integrated financial software system and/or data.
Assessors must satisfy NVR/AQTF assessor requirements.