11Assessment to be against common indicators

11 Assessment to be against common indicators

(1) The assessment of financial viability risk will be undertaken by assessing common indicators of financial performance and position. These may include but are not limited to the following indicators:

1. Liquidity– including current ratio and cash flow assessments
2. Solvency – including debt to assets assessment, debt to equity assessment
3. Economic Dependency – for example, reliance upon government funded training, or reliance on a particular cohort of students (e.g. overseas students)
4. Revenue, profit and cash flow
5. Commercial risk
6. Audit opinion
7. Contingencies
8. Compliance with all of its statutory obligations (for example: GST, taxation, superannuation, Companies Code)
9. Compliance with accounting standards
10. Accounting policies – impact of the organisation’s accounting policies on its financial risk.