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Evidence Guide: FNSACC608 - Evaluate organisation’s financial performance

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSACC608 - Evaluate organisation’s financial performance

What evidence can you provide to prove your understanding of each of the following citeria?

Review performance

  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
  2. Regularly review forecasts in line with actual performance and alternative sources of information
  3. Assess risk strategies for long-term viability and harmonise with short-term goals and obligations
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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Regularly review forecasts in line with actual performance and alternative sources of information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess risk strategies for long-term viability and harmonise with short-term goals and obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate returns to operations

  1. Trend cash flow and profitability patterns to identify current position and expected returns from investments and projected operations
  2. Disaggregate averaged returns to assess strengths and weaknesses in organisational performance
  3. Evaluate investment returns against risk, profit and capital budget requirements
Trend cash flow and profitability patterns to identify current position and expected returns from investments and projected operations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disaggregate averaged returns to assess strengths and weaknesses in organisational performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate investment returns against risk, profit and capital budget requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine short-term and long-term needs

  1. Identify resources required by organisation to meet short-term and long-term obligations, and cost using standard financial analysis techniques
  2. Establish and review financial priorities based on reported performance and identified trends, organisational objectives and expected returns to operations and investments
  3. Review financial options and conduct analysis of range of possible assets and liabilities to optimise capital mix to support operations and trading need
  4. Evaluate and document organisational policy and procedures for expenditures and investments to ensure relevance to changing personnel profiles
  5. Analyse debt to equity targets in terms of organisation’s expected performance and establish in line with organisational objectives using standard accounting techniques
  6. 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
  7. Regularly review forecasts in line with actual performance and alternative sources of information
  8. Assess risk strategies for long-term viability and harmonise with short-term goals and obligations
Identify resources required by organisation to meet short-term and long-term obligations, and cost using standard financial analysis techniques

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish and review financial priorities based on reported performance and identified trends, organisational objectives and expected returns to operations and investments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review financial options and conduct analysis of range of possible assets and liabilities to optimise capital mix to support operations and trading need

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate and document organisational policy and procedures for expenditures and investments to ensure relevance to changing personnel profiles

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse debt to equity targets in terms of organisation’s expected performance and establish in line with organisational objectives using standard accounting techniques

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Regularly review forecasts in line with actual performance and alternative sources of information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess risk strategies for long-term viability and harmonise with short-term goals and obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.