AS 91386 annotated exemplars

This annotated exemplar is intended for teacher use only. Annotated exemplars are extracts of student evidence, with commentary, that explain key parts of a standard. These help teachers make assessment judgements at the grade boundaries.

Download all exemplars and commentary [PDF, 220 KB]

TKI Accounting assessment resources (external link)

For Excellence, the student needs to demonstrate comprehensive understanding of an inventory subsystem for an entity.

This involves:

• processing complex financial information for the entity’s inventory subsystem
• justifying elements of the entity’s inventory subsystem.

The student has processed complex inventory transactions on an inventory card.

The student has explained and justified elements of the inventory subsystem and linked the justifications to the goals (1).

Transactions have been integrated into the report (2).

For a more secure Excellence, the student could explain terms such as re-order point and lead time (1), and provide further justifications, such as the reasons for authorisation, or the consequences of inventory loss detected through stocktakes (2).

For Merit, the student needs to demonstrate in-depth understanding of an inventory subsystem.

This involves:

• processing detailed financial information for the entity’s inventory subsystem
• explaining elements of the entity’s inventory subsystem.

Complex inventory transactions have been processed on an inventory card, and this processing has been completed to Excellence level.

The student has explained perpetual inventory and linked it to the goal of ensuring sufficient stock is on hand (1).

The inventory control explanation provides details of the checking process when inventory arrives and again is linked to the goal of quality product (2).

The stock take explanation includes the procedure used when stock is missing (3).

Transactions have been integrated into explanations (4).

While processing has been completed to Excellence level, this standard sits within the systems cell on the Accounting Matrix, therefore discussion of the inventory subsystem elements carries greater weighting in determining the grade.

To reach Excellence, further justification is required. For example, the student could explain the consequence of a procedure not being carried out, such as when a delivery of inventory does not match the documents (3). An explanation of the process for accounting for the difference between the actual and theoretical stock balances could have been provided (4).

For Merit, the student needs to demonstrate in-depth understanding of an inventory subsystem.

This involves:

• processing detailed financial information for the entity’s inventory subsystem
• explaining elements of the entity’s inventory subsystem.

The student has accurately processed detailed inventory transactions on an inventory card.

Some elements of the inventory subsystem have been explained, such as the timeliness of orders (1).

The use of documents is explained by referring to the sequential numbering system and authorisation (2).

Payment of invoices for stock is linked to the need for a positive relationship with the supplier (3).

For a more secure Merit, each element of the subsystem needs to be explained by indicating why the procedure is necessary and how it helps the entity achieve its goals.

For Achieved, the student needs to demonstrate understanding of an inventory subsystem.

This involves:

• processing financial information for the entity’s inventory subsystem
• describing elements of the entity’s inventory subsystem.

The student has processed transactions on an inventory card.

Perpetual and periodic inventory systems have been described (1).

Inventory cards have been discussed with the FIFO and WAC measurement methods included (2).

The objectives of the inventory system are clearly stated, with some description of how they are met by the uniform shop’s system (3).

To reach Merit, a full explanation of each procedure is required. For example, the student could explain why authorisation is required for orders over $500, and why retaining obsolete stock should be avoided (3).

For Achieved, the student needs to demonstrate understanding of an inventory subsystem.

This involves:

• processing financial information for the entity’s inventory subsystem
• describing elements of the entity’s inventory subsystem.

Detailed financial transactions have been entered onto an inventory card.

The student has described the authorisation process with some details (1).

The perpetual inventory system has been discussed with a limited explanation as to why this system is used (2).

The procedure for ordering stock is described along with the procedure used when stock arrives (3).

Processing has been completed to Merit level. This standard sits within the systems cell on the Accounting Matrix, therefore discussion of the inventory subsystem elements carries greater weighting in determining the grade.

For a more secure Achieved, the student could describe the goals or objectives of the uniform shop’s inventory system. The processes could then be linked to the objectives, for example, ensuring that adequate inventory levels are maintained and adequate records are produced.

For Achieved, the student needs to demonstrate understanding of an inventory subsystem.

This involves:

• processing financial information for the entity’s inventory subsystem
• describing elements of the entity’s inventory subsystem.

Transactions have been processed on an inventory card.

The student has provided statements of fact about the entity’s inventory subsystem (1).

Statements of fact have also been made about how the uniform shop meets its inventory subsystem objectives (2).

To reach Achieved, the student could describe why processes occur and how they link to the objectives of the subsystem.

Explanations about each objective could be expanded to relate theory to actual practice within the uniform shop. For example, as well as saying that authorisation is required for orders over $500, there could be discussion of orders under this amount. A description of consequences of the lack of authorisation could also be provided as evidence towards Achieved.