K Knowledge HF-D8.4-003 cross-sector 10 skills
Reading and interpreting financial reports
Reads balance sheet, profit and loss account and cash flow statement and derives from these how an organisation or unit stands financially.
How hrmforce measures this
- Assessment method
- Knowledge test · rho 0.40 (SD 0.13)
- hrmforce instrument
- Knowledge test (client-specific)
- Competency (50-framework)
- Judgment
- Trainability
- high
- Demand outlook 2026 to 2030
- stable
Test of declarative job knowledge, usually assembled per client.
Behavioural anchors
| Level | Behaviour at this level |
|---|---|
| N1 Guided | Points out the revenue, cost and result items in a periodic report and names the period used. works under supervision and follows instruction · routine, one variable at a time · own task |
| N3 Proficient | Compares reports across several periods, calculates ratios and names which items explain the deviation. sets own approach and seeks input proactively · several variables, some ambiguity · own team or process |
| N5 Leading | Assesses annual accounts and management reports of the organisation, sets the reporting standard and advises the board on it. sets the standard and the policy · strategic, under high uncertainty · organisation, value chain or profession |
N2 and N4 are deliberately not anchored. Raters place them between the anchors, following the O*NET convention.
Underlying skills
These skills inherit the assessment route and the behavioural anchors of this construct.
| T | Skill | Definition | Demand outlook 2026 to 2030 |
|---|---|---|---|
| K | Reading a balance sheet Balance sheet | Reads assets, liabilities and equity on the balance sheet and names what stands out. | stable |
| K | Reading a profit and loss account Profit and loss | Reads revenue, costs and result in the income statement and recognises the main items. | stable |
| K | Reading a cash flow statement Cash flow statement | Reads cash flows from operations, investment and financing and explains the change in cash position. | stable |
| K | Calculating financial ratios Financial ratios | Calculates ratios such as current ratio, return and turnover rate and explains the outcome. | stable |
| K | Assessing solvency and liquidity Solvency and liquidity | Assesses with ratios whether an organisation can meet obligations in the short and long term. | stable |
| K | Interpreting management reporting Management reporting | Extracts the main variances and trends from periodic reporting and formulates questions. | stable |
| K | Understanding the annual accounts Annual accounts | Understands structure, notes and valuation principles of annual accounts and the role of the auditor. | stable |
| K | Assessing creditworthiness Credit assessment | Assesses with figures, payment behaviour and credit information whether a customer or supplier is reliable. | stable |
| K | Understanding depreciation and provisions Depreciation and provisions | Explains how depreciation, provisions and reserves affect the result and the balance sheet. | stable |
| T | Reading a finance report in Power BI | Navigates a financial dashboard, filters on period and unit and interprets the figures. | stable |