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. Plan preparation timetable | 1.1 Identify all critical milestones to ensure financial forecasts and projections can be prepared within timeframes 1.2 Review business plans, financial forecasting and processing systems to identify timeframes and parameters, and any potential conflicts |
2. Identify assumptions and parameters | 2.1 Review business plans and exception reports to identify and resolve conflicts in assumptions 2.2 Review assumptions and parameters to ensure compliance with organisational policy and procedures 2.3 Analyse current and historical financial reports to establish trends, and examine external environment to gain objective overview |
3. Issue instructions and relevant aids for preparation of forecasts and projections | 3.1 Issue clear instructions that comply with organisational format to facilitate use and ensure consistent interpretation 3.2 Identify business types to enable selection of effective financial models, and provide training to users to ensure comprehensive understanding and effective use of models |
4. Collect, consolidate, model and analyse data | 4.1 Review data to ensure consistency with model used and document analysis results clearly 4.2 Collect reliable, valid, complete and comprehensive data 4.3 Process and consolidate data in logical structured format that enables ready analysis according to established timetable |
5. Document results and obtain approval | 5.1 Document results clearly in suitable format that meets needs of target users 5.2 Obtain all approvals in accordance with management objectives and financial and organisational policy, and distribute results within timetable |
Evidence of the ability to:
comply with organisational policy and procedures that relate to the preparation of financial forecasts and projections
apply standard accounting principles and techniques
accurately identify assumptions and parameters of forecasts
collect, consolidate, model and analyse data in a timely manner
document forecasts and projections, and obtain approval where required.
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:
describe relevant financial industry codes of practice
explain financial forecasting techniques, models and best practice
identify key users or audience for financial forecasts and projections
outline factors in the external environment that can impact on financial forecasts
outline the relevance of historical financial reports to forecasting
identify and interpret relevant organisational policy and procedures
explain key requirements of relevant legislation and regulations that influence the financial services industry.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the organisational skills field of work and include access to:
office equipment, technology, software and consumables
an integrated financial software system and data
organisational policy and procedures documentation.
Assessors must satisfy NVR/AQTF assessor requirements.