NZQA registered unit standard
26365 version 3
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Title
Conduct and report on a financial analysis for an entity
Level
4
Purpose
Credits
5
People credited with this unit standard are able to, for an entity:
demonstrate knowledge of financial analysis; calculate and
compare ratios from financial statements; and interpret the
results of the analysis and report.
This unit standard is for people who are not financial specialists
or experts but who need financial knowledge and skills in their
workplace.
Classification
Financial Management > Financial Skills
Available grade
Achieved
Explanatory notes
1
People must be assessed against this unit standard in their workplace using naturally
occurring evidence, or in a realistic simulation of such a context. Competence must
be demonstrated within timeframes expected in a commercial environment.
2
An entity may include but is not limited to – an entire organisation; a part of an
organisation such as a cost-centre, department, or branch; a small-to-medium
enterprise (SME); a community group such as a sports club.
3
People seeking to use credits from this standard for a New Zealand Business
qualification (for example by Recognition of Prior Learning or of Current Competence
[RCC or RPL], or by credit transfer), may be required to demonstrate their
competence “in and for the context of a real or realistic business entity, and in light of
the requirements of that context”, as required by New Zealand Business
qualifications.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of financial analysis for an entity.
Evidence requirements
1.1
Financial measures are identified and explained in terms of how they indicate
the financial position of the entity.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Range
26365 version 3
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must include – revenue statement, balance sheet, budgets, gross
profit ratio, operating ratio, net profit ratio;
and at least three of the following ratios – current, liquid, expense,
proprietary, stock turnover, return on total resources, return on
proprietors’ funds, return on ordinary capital, asset-proprietorship,
liabilities-proprietorship, stock-working capital, capital gearing.
Outcome 2
Calculate and compare ratios from financial statements for an entity.
Range
ratios – profitability, coverage, liquidity, activity, financial structure.
Evidence requirements
2.1
Ratios are calculated.
2.2
The financial data is compared.
Range
comparison with three of – previous periods, other entities,
industry averages, budgeted or forecasted data.
Outcome 3
Interpret the results of the analysis and report for an entity.
Evidence requirements
3.1
Findings, conclusions, and recommendations are communicated in a form
appropriate to the recipient(s) and/or the entity.
Range
3.2
The report addresses two limitations that might affect the financial analysis.
Range
3.3
communication may be – written report, presentation;
recipient(s) may be – external or internal stakeholders.
limitations may include but are not limited to – lack of information,
new business, extraordinary items, natural disaster.
The report includes recommendations for actions to address any deficiencies or
opportunities for improvement identified in the entity’s performance.
Replacement information
This unit standard replaced unit standard 1853 and unit
standard 19015.
Planned review date
31 December 2020
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26365 version 3
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Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
21 May 2010
31 December 2016
Rollover
2
18 April 2013
31 December 2020
Rollover and
Revision
3
17 September 2015
31 December 2020
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the CMR. The CMR also includes useful information about
special requirements for organisations wishing to develop education and training
programmes, such as minimum qualifications for tutors and assessors, and special
resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 9999
 New Zealand Qualifications Authority 2016