VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. Answering “Elements” Questions
• Recommended structure when answering questions about the
“elements” of Accounting:
• Identify: identify which “element” the transaction is
• Define: define the “criteria” of the element
• Relate: relate each “criteria” to the question or case study you
have been given.

2. Answering “Elements” Questions
For example, this question could be answered in the following way:
“On 31 December 2015 a business paid $30,000 for rent covering 2016, 2017 and
2018. With reference to the SAC2 definition of the elements of accounting, explain
how this transaction would be treated in the firm’s records”.
Identify Asset
Define
There is a resource controlled by the
entity…
Relate
… as the firm now legally controls the
property for 2016, 2017 and 2018.
There was a past event (transaction)… … which occurred when the firm paid
$30,000 for rent for the next 3 years.
Future economic benefits will flow to
the business…
… in the form of the firm being able to
occupy the premises for 3 years.

3. Answering “Elements” Questions
For example, this question could be answered in the following way:
“On 31 December 2015 a business paid $30,000 for rent covering 2016, 2017 and
2018. With reference to the SAC2 definition of the elements of accounting, explain
how this transaction would be treated in the firm’s records”.
Explain The business has a $30,000 Asset. There is a resource controlled by
the entity as the firm now legally controls the property for 2016, 2017 and
2018. There was a past event (transaction) which occurred when the firm paid
$30,000 for rent for the next 3 years. Future economic benefits will flow to the
business in the form of the firm being able to occupy the premises for 3 years.
Explain The business has a $30,000 Asset. There is a resource controlled by
the entity as the firm now legally controls the property for 2016, 2017 and
2018. There was a past event (transaction) which occurred when the firm paid
$30,000 for rent for the next 3 years. Future economic benefits will flow to the
business in the form of the firm being able to occupy the premises for 3 years.
Explain The business has a $30,000 Asset. There is a resource controlled by
the entity as the firm now legally controls the property for 2016, 2017 and
2018. There was a past event (transaction) which occurred when the firm paid
$30,000 for rent for the next 3 years. Future economic benefits will flow to the
business in the form of the firm being able to occupy the premises for 3 years.
Explain The business has a $30,000 Asset. There is a resource controlled by
the entity as the firm now legally controls the property for 2016, 2017 and
2018. There was a past event (transaction) which occurred when the firm paid
$30,000 for rent for the next 3 years. Future economic benefits will flow to the
business in the form of the firm being able to occupy the premises for 3 years.
Explain The business has a $30,000 Asset. There is a resource controlled by
the entity as the firm now legally controls the property for 2016, 2017 and
2018. There was a past event (transaction) which occurred when the firm paid
$30,000 for rent for the next 3 years. Future economic benefits will flow to the
business in the form of the firm being able to occupy the premises for 3 years.