Accounting 2019 v2.

0
IA1 high-level annotated sample response
August 2018

Examination – combination response (25%)

This sample has been compiled by the QCAA to assist and support teachers to match evidence
in student responses to the characteristics described in the instrument-specific marking guide
(ISMG).

Assessment objectives
This assessment instrument is used to determine student achievement in the following
objectives:
1. comprehend accounting concepts, principles and/or processes relating to managing
resources for a trading GST business
2. apply accounting principles and processes relating to managing resources for a trading
GST business to calculate, record and report the purchase, depreciation and disposal of
non-current assets
3. analyse and interpret financial data and information relating to managing resources for a
trading GST business
4. evaluate accounting practices relating to managing resources for a trading GST business to
make decisions and propose recommendations
6. create a business report (extract) that communicates meaning to the business owner of a
trading GST business.
Note: Objective 5 is not assessed in this instrument.
172088
 Instrument-specific marking guide (ISMG)
Criterion: Comprehending
Assessment objective
1. comprehend accounting concepts, principles and/or processes relating to managing resources
for a trading GST business

The student work has the following characteristics: Marks

• identification of significant characteristics in the response

• thorough understanding of accounting concepts, principles and/or processes 4–5
• perceptive use of accounting terminology.

• identification of appropriate characteristics in the response

• adequate understanding of accounting concepts, principles and/or processes 2–3
• adequate use of accounting terminology.

• identification of inappropriate characteristics in the response

• vague or partial understanding of accounting concepts, principles and/or processes 1
• inconsistent and/or narrow use of accounting terminology.

• does not satisfy any of the descriptors above. 0

Criterion: Applying
Assessment objective
2. apply accounting principles and processes relating to managing resources for a trading GST
business to calculate, record and report the purchase, depreciation and disposal of non-
current assets
Item 1

The student work has the following characteristics: Marks

• effective application of accounting principles and diminishing balance method to calculate

the purchase of non-current assets and depreciation for part and full year periods
• effective application of double entry to record and process transactions for the purchase 3–4
and depreciation of non-current assets in the general ledger
• effective application of accounting processes to report non-current assets in the Statements
of Financial Position (extract) for two consecutive financial years.

• application of accounting principles and diminishing balance method to calculate the

purchase of non-current assets and depreciation
• application of double entry to record and process transactions for the purchase and 2
depreciation of non-current assets in the general ledger
• application of accounting processes to report non-current assets in the Statements of
Financial Position (extract) for two consecutive financial years.

• inconsistent application of accounting principles and diminishing balance method to

calculate the purchase of non-current assets and depreciation
• inconsistent or partial application of double entry to record and process aspects of 1
transactions for the purchase and depreciation of non-current assets in the general ledger
• inconsistent or partial application of accounting processes to report non-current assets in
the Statement of Financial Position (extracts).

• does not satisfy any of the descriptors above. 0

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
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 Item 2

The student work has the following characteristics: Marks

• effective application of accounting principles and straight-line depreciation method to

calculate disposal of non-current assets, including historical cost, depreciation for a part
year, accumulated depreciation and gain or loss on disposal
• effective application of double entry to record and process transactions for the disposal of a 3
non-current asset in the general ledger
• effective application of accounting processes to report disposal data and information in the
Statement of Profit or Loss (extract).

• application of accounting principles and straight-line depreciation method to calculate

disposal of non-current assets
• application of double entry to record and process transactions for the disposal of a non-
2
current asset in the general ledger
• application of accounting processes to report disposal data and information in the
Statement of Profit or Loss (extract).

• inconsistent application of accounting principles or straight-line depreciation method to

calculate the disposal of non-current assets
• inconsistent or partial application of double entry to record and process aspects of
1
transactions for the disposal of a non-current asset in the general ledger
• inconsistent or partial application of accounting processes to report the disposal in the
Statement of Profit or Loss (extract).

• does not satisfy any of the descriptors above. 0

Criterion: Analysing
Assessment objective
3. analyse and interpret financial data and information relating to managing resources for a
trading GST business

The student work has the following characteristics: Marks

• examines financial data and information through the identification of significant and relevant
relationships
5–6
• thorough interpretation of trends in the financial data and information
• thorough and logical explanation of issues with the management of resources.

• examines financial data and information through the identification of relationships

• interpretation of trends in the financial data and information 3–4
• explanation of issues with the management of resources.

• examines financial data or information through the identification of superficial relationships

• superficial interpretation of financial data or information 1–2
• narrow or partial statements of issues.

• does not satisfy any of the descriptors above. 0

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 3 of 10
 Criterion: Evaluating
Assessment objective
4. evaluate accounting practices relating to managing resources for a trading GST business to
make decisions and propose recommendations

The student work has the following characteristics: Marks

• perceptive judgments for proposed changes to accounting practices relating to managing

resources
3–4
• thoroughly justified decisions for managing resources relevant to the accounting context
• convincing recommendations for managing resources pertinent to the accounting context.

• judgments for proposed changes to accounting practices relating to managing resources

• decisions for managing resources relevant to the accounting context 2
• recommendations for managing resources relevant to the accounting context.

• rudimentary or partial statements for proposed changes to accounting practices relating to

managing resources
1
• inconsistent or partial decisions for the accounting context
• inconsistent or partial recommendations for the accounting context.

• does not satisfy any of the descriptors above. 0

Criterion: Communicating
Assessment objective
6. create a business report (extract) that communicates meaning to the business owner of a
trading GST business

The student work has the following characteristics: Marks

• succinct, with effective language choices to communicate analysis, interpretation and

evaluation to the business owner
3
• logical sequencing and organisation of ideas in a business report (extract)
• minimal errors in spelling, grammar and punctuation.

• appropriate language choices to communicate analysis, interpretation and evaluation to

the business owner
2
• clear sequencing and organisation of ideas in a business report (extract)
• some errors in spelling, grammar and punctuation.

• inappropriate language choices to communicate business data, information or advice

• unclear or fragmented sequencing of ideas in a business report (extract) 1
• frequent errors in spelling, grammar and punctuation.

• does not satisfy any of the descriptors above. 0

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
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 Task
See the sample assessment instrument for IA1: Examination — combination response (25%) 1
(available on the QCAA Portal).

Sample response
Criterion Marks allocated Result

Comprehending (Part A)
5 5
Assessment objective 1

Applying (Part B)
7 7
Assessment objective 2

Analysing (Part C)
6 6
Assessment objective 3

Evaluating (Part C)
4 4
Assessment objective 4

Communicating (Part C)
3 3
Assessment objective 6

Total 25 25

The annotations show the match to the instrument-specific marking guide (ISMG) performance-
level descriptors.

Comprehending [4–5] Question 1

thorough
understanding Data is a vital business asset. It can be used to establish, operate,
Question 1: dissolve and recover a business. Accurate, timely and reliable data can be
importance of data analysed and acted upon to improve the business’s bottom line and gain a
Question 2: competitive advantage. When data is analysed, patterns and trends can be
impact of outsourcing identified which reveal the business’s strengths and weaknesses, and
accounting processes
opportunities and threats faced by the business. Based on the data,
identification of businesses can make informed decisions about the implementation of
significant
characteristics
strategies that could result in improved productivity through the lowering of
overall costs, increased quality of products and/or services, and/or
Question 1: reduction of waste.
purpose of data
Question 2: Question 2
role of outsourcing
companies
The business relies on outsourcing companies to reduce operating costs.
perceptive use of
accounting Outsourcing companies remove the need for businesses to advertise and
terminology interview prospective employees for bookkeeping positions and train
Question 1: employees in the use of the business’s accounting software. Unlike the
bottom line, data, business, the outsourcing company can scale the accounting process up
competitive advantage, or down depending on the business’s requirements without affecting
informed decisions
employees’ jobs. Outsourcing companies are aware of, and implement,
Question 2: changes in legislation and practice and they adhere to strict standards
accounting processes,
operating costs,
regarding confidentiality and data protection.
outsourcing

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 5 of 10
 Applying [3–4] Question 3
effective application
of accounting
principles and
diminishing balance Type: Delivery vehicle — Volkswagen
method
correct calculations for
Asset Accumulated
Depreciation
the purchase of Date Balance Depreciation
delivery vehicles,
$
$ $
including GST,
depreciation and 2017 July 1 90 000
accumulated
depreciation
2018 June 30 31 500 31 500

2019 June 30 20 475 51 975

Type: Delivery vehicle — Ford Transit

Asset Accumulated
Depreciation
Date Balance Depreciation
$
$ $

2018 Dec 30 49 200

2019 Jan 1 3 200

2019 June 30 9 170 9 170

Depreciation Accumulated Depreciation

2018 31 500 31 500
2019 20 475 + 9 170 = 29 645 51 975 + 9 170 = 61 145

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 6 of 10
 Applying [3–4] AAA Solutions
effective application General Ledger (extract)
of double entry to Debit Credit Balance
record and process Date Particulars
transactions $ $ $
all transactions
Depreciation on Delivery
recorded and Vehicles
processed correctly, Accumulated
including dates, 2018
Depreciation on 31 500 31 500 DR
particulars and June 30
Delivery Vehicles
amounts
Profit and Loss 31 500 NIL
Accumulated
2019
Depreciation on 29 645 29 645 DR
June 30
Delivery Vehicles
Profit and Loss 29 645 NIL

Delivery Vehicle Expenses

2018
Bank 800 800 DR
July 1
Dec 30 Bank 1 200 2 000 DR
2019
Profit and Loss 2 000 NIL
June 30

Delivery Vehicles
2017
Vehicles Galore 90 000 90 000 DR
July 1
2018
Car Sales Ltd 49 200 139 200 DR
Dec 30
2019
Bank 3 200 142 400 DR
Jan 1

Accumulated Depreciation on Delivery Vehicles

2018 Depreciation on
31 500 31 500 CR
June 30 Delivery Vehicles
2019 Depreciation on
29 645 61 145 CR
June 30 Delivery Vehicles

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 7 of 10
 Applying [3–4] AAA Solutions
effective application Statement of Financial Position (extract)
of accounting as at 30 June 2018
processes to report
non-current assets $ $
accounts and amounts
reported correctly in Assets
consecutive years
Delivery Vehicles 90 000
Less Accumulated Depreciation
31 500 58 500
on Delivery Vehicles

AAA Solutions
Statement of Financial Position (extract)
as at 30 June 2019
$ $
Assets
Delivery Vehicles 142 400
Less Accumulated Depreciation on
61 145 81 255
Delivery Vehicles

Question 4
Applying [3]
effective application
of accounting
principles and
straight-line
depreciation method
correct calculation of
Accumulated
Depreciation on
Furniture and Fittings,
and Bank

effective application
of double entry to
record and process
transactions
all transactions
recorded and
processed correctly

effective application Westmart Suppliers

of accounting Statement of Profit or Loss (extract)
processes to report
disposal data and for year ended 30 June 2019
information $
accounts and amounts
reported correctly Expenses
Depreciation on Furniture and Fittings 1 125
Loss on Disposal of Furniture and Fittings 2 605

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 8 of 10
 Analysing [5–6] Question 5
thorough and logical
explanation of issues Issues identified
maintenance schedule
not adhered to
Monitoring vehicle usage against the Routine Maintenance Schedule was
required to ensure appropriate servicing for each vehicle. It was evident
from invoice 2001321 that services were missed. The factory warranties
have been voided as a result of not following the terms and conditions.
identification of The additional invoices indicate repairs not covered by the warranty, and
significant and could have been avoided if the appropriate servicing schedules were
relevant relationships
executed. If vehicles were serviced appropriately, the cost would have
additional vehicle costs been $10 975 up to and including the 100 000 km service; however, the
in relation to factory organisation has had to pay $24 000 for repairs so far.
warranty; office
equipment location in
relation to the locked The locked cupboard ensures access to equipment is limited to the
cupboard and sign receptionists. Employees must complete the sign in/out register held by
in/out register
the receptionists resulting in all equipment being easily located and
accounted for at all times.
thorough and logical
explanation of issues From 2015-2017 there was a slight increase in total kilometres per year
logbooks not because of increased client visits. At the end of 2018, Bevan noticed a
completed significant increase in kilometres. He checked the logbooks for the first
time and found they were not being used. It was not possible to determine
thorough
why the total number of kilometres had increased significantly because
interpretation of considering the business lost five clients in 2018. The increase in
trends kilometres indicated consultants or other employees may have used the
logbooks not vehicles for their personal use. It was not possible to determine who used
maintained since 2015, the vehicles inappropriately because the vehicles were not assigned to a
resulting in misuse of particular consultant.
vehicles in 2018
annual audits over four Office equipment audits were conducted annually by the bookkeeper
years ensured
equipment was present ensuring all equipment was present and in good working order and the
and kept in good sign in/out registers were being maintained correctly.
working order
There is no internal control policy for non-current assets (NCA) resulting in
thorough and logical
serious issues regarding the monitoring of the vehicles. Checking of
explanation of issues logbooks and adherence to schedules has not occurred resulting in
no internal controls for
additional costs affecting the organisation’s profit.
NCAs

Evaluating [3–4] Proposed changes

perceptive judgment Asset register (AR) implementation, instructions regarding the correct use
for proposed of logbooks and procedures for monitoring NCAs (audit register, NCA
changes
security procedures and logbook checking) should be included in the
the use of an asset OPPM. OPPM NCA controls should be available to existing and new staff
register and clear
instructions for the use and all relevant staff would be expected to familiarise themselves with all
of logbooks procedures to ensure issues like voiding of warranties, misuse of NCAs
and theft do not occur.
thoroughly justified
decisions An AR should include records for each non-current asset to ensure
appropriate tracking and regular maintenance is performed to provide
asset register for
tracking, maintenance
operational reliability, and in some instances, provide for the safety of
and safety; logbooks to employees. Correctly maintained logbooks are essential to monitor vehicle
monitor usage and usage. Incorrect usage results in increased wear, tear, additional petrol
decrease associated
costs
costs and insurance implications.

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
Page 9 of 10
 convincing An AR can be matched to the financial records for verification purposes,
recommendations
prevent duplication of asset purchases (especially since the business is to
asset register used for open more offices) resulting in improved cash flow and profitability, and
verification purposes,
tracking and decreased
keep track of relevant details to ensure scheduled maintenance is not
downtime; logbooks to missed which could lead to cancellation of warranties and downtime. The
be checked regularly bookkeeper should check the logbooks regularly and often to ensure their
and often to prevent
misuse
correct usage.

Communicating [3]

The response is succinct, with effective language choices to communicate analysis,

interpretation and evaluation to the business manager. The business report (extract)
contains logical sequencing and organisation of ideas. Minimal errors in spelling,
grammar and punctuation are present.

Accounting 2019 v2.0 Queensland Curriculum & Assessment Authority

IA1 high-level annotated sample response August 2018
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