Understanding the Intellectual Levels

It is recommended best practice in accounting education to give students as much guidance as possible on how much
study is required in order to achieve syllabus aims and objectives. Therefore, as their tutors, you need to be aware of the
depth at which your students will be assessed in any given area so that you can adequately prepare them for their
exams.
Gareth Owen,
ACCA Qualifications Development Manager

For the ACCA Qualification, all Study Guides refer to three intellectual levels. These represent the three bands of
intellectual or cognitive ability required to study a particular subject or topic area.

The ACCA syllabus

ACCA has chosen to use three ascending levels of intellectual difficulty:
1. knowledge and comprehension
2. application and analysis
3. synthesis and evaluation.

Level 1: F1 F3
Knowledge and comprehension require demonstration of the following capabilities:

 retention and recall of knowledge

understanding of major accounting and business ideas, techniques and theories
use of knowledge and techniques in new but familiar situations
recognition of fundamental cause and effect in accounting.

Level 2: F4 F9
Application and analysis require demonstration of the following capabilities:
analysis of unfamiliar situations to prepare reports and solve problems using relevant concepts and theories
recognition of subtle or hidden information patterns and trends within financial and other information, and the ability
to interpret these
the ability to infer from given information and draw conclusions.

Level 3: P1 P7
Synthesis and evaluation require:
demonstration of the following capabilities: creation of new ideas from, or new insights into, existing knowledge
generalisation, comparison and discrimination using complex and unstructured information
assessment and evaluation of complex information
use of reasoned argument to infer and make judgments

 presentation and justification of valid recommendations

Action Words

Define

Level

Actual Meaning

Tips for Students

Give the meaning

specific to the subject

Definitions are short

and precise

Describe

1, 2

Give a detailed account

or key features. List
characteristics, qualities
and parts

Identification is not
sufficient. Paint a
picture with words

Explain

1, 2

Make an idea clear.

Show logically how a
concept is developed.
Give the reason for an
event.

Do not list points.

Provide a reason or
justification.

Identify

To recognise or select, to
classify definitive
characteristics

Associate something
closely.

List

Lists events, ideas,

qualities, reasons etc.

Connected items
written consecutively

Advise

2, 3

To counsel, suggest,
recommend, inform or
notify

Inform or make
suggestions about the
situation

Analyse

2, 3

Break into separate parts

and discuss, examine or
interpret each part

Should give reasons

for the situation

To put into action

pertinently and relevantly

Should bring into

operation the scenario

Apply

Calculate

2, 3

To ascertain by
computation, to make an
estimate of.

Descriptions should be
accompanied by
numerical calculations

Compare

2,3

Examine two or more

things to identify
similarities and
differences

Clearly explain
resemblances or
differences

Conclusion

2, 3

The result of an outcome

or act, final arrangement
or settlement

The answer must end

with a clear decision

Contrast /
Distinguish

2, 3

Explain two different

positions, highlighting
differences between
them

Classify, categorize
and clearly indicate
differences

Illustrate

Give concrete examples.

Explain using
comparisons or
examples

Provide an explanation
showing how
something is done

Indicate

2, 3

To suggest or
demonstrate the
necessity, expedience or
advisability

Show the reason for

the course of action

Outline

Describe the main ideas,

characteristics, or events

Give the main features

or general plan but no
detail

Relate

2, 3

Show the connections

between ideas or events

Establish a causal
connection

Explain precisely

Focus on the exact

point

State

Summarise

Assess

Comment

Give a brief, condensed

account. Include
conclusion

Avoid unnecessary
details

2, 3

To judge the worth,

importance, evaluate the
nature, quality or
significance.

Determine the
strengths/
weaknesses/

To remark or express an
opinion

The answer should be

an explanation,
illustration or criticism

significance

Criticise

Evaluate comparative
worth. Present the
weaknesses and
problems

Need to analyse the

situation and not just
explain

Compare

2,3

Examine two or more

things to identify
similarities and
differences

Clearly explain
resemblances or
differences

Conclusion

2, 3

The result of an outcome

or act, final arrangement
or settlement

The answer must end

with a clear decision

Contrast /
Distinguish

2, 3

Explain two different

positions, highlighting
differences between
them

Classify, categorize
and clearly indicate
differences

Discuss

2, 3

Consider and debate

pros and cons. Examine
in detail

Compare and contrast

Evaluate

2, 3

Determine the scenario

in the light of the
arguments for and
against

Mention
evidence/issues as
support

Interpret

Give the meaning of,

comment upon, describe
causal relationships

Include explanation
and evaluation

Prove

Support with facts

Use supporting
evidence from the
scenario

Recommend

Advise the appropriate

actions to pursue

Should give advice or

counsel

Exam Techniques to maximise marks:

Allocate time to questions

1.5 minutes per allocated mark
Allocate time to each part of a question

Read Questions carefully

Read the requirements first
Read the scenario and highlight important data

Break down the requirement

Read the requirement again
Look for the key verbs

Plan the Answer

Consider the key verbs and intellectual level
Sketch a layout / appropriate presentation
Consider the marks allocated

Make the right choice

Choose at the beginning of the exam
Capture the easy marks