Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: prepare income statements, statements of changes in equity and statements of financial position
Learning Objective/s:
  • Prepare a complete Income Statement (Profit & Loss Account) for a limited company.
  • Construct a Statement of Changes in Equity using opening equity, net profit and dividends.
  • Compile a Statement of Financial Position and verify that Assets = Liabilities + Equity.
  • Explain the logical flow of information between the three statements.
  • Identify and classify assets and liabilities as current or non‑current.
Materials Needed:
  • Projector and screen
  • Printed worksheet with ABC Ltd. data
  • Calculator for each student
  • Whiteboard and markers
  • Excel template for financial statements (optional)
  • Accounting textbook (IGCSE 0452) for reference
 Introduction:
Begin with a short video clip showing a real‑world company’s annual report to spark interest. Ask students what information they think investors need and link this to prior knowledge of revenue and expenses. State that by the end of the lesson they will be able to produce the three core financial statements for a limited company and check their work against the accounting equation.
Lesson Structure:
  1. Do‑now (5’) – Quick quiz on the purpose of financial statements and key terminology.
  2. Mini‑lecture (10’) – Explain the Income Statement layout, formula and how net profit is derived.
  3. Guided practice (15’) – Students complete the Income Statement for ABC Ltd. using the worksheet.
  4. Demonstration (10’) – Show how the net profit feeds into the Statement of Changes in Equity; complete it together.
  5. Group activity (15’) – Build the Statement of Financial Position, classify assets/liabilities, and balance the equation.
  6. Check for understanding (5’) – Whole‑class review of common pitfalls and balancing check.
  7. Exit ticket (5’) – Write three bullet points summarising the flow of information from the Income Statement to the Balance Sheet.
Conclusion:
Recap the step‑by‑step process of moving from the Income Statement to the Statement of Changes in Equity and finally to the Balance Sheet. Collect the exit tickets and highlight any lingering misconceptions. For homework, assign a new set of figures for students to prepare all three statements independently.