Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: materiality
Learning Objective/s:
  • Define materiality and explain its relevance to financial statements.
  • Apply quantitative and qualitative tests to determine materiality thresholds.
  • Perform calculations using typical percentage bases and justify judgments.
  • Evaluate exam‑style scenarios and articulate appropriate recording decisions.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with practice transactions
  • Calculator for each student
  • Sample financial statements handout
  • Whiteboard and markers
 Introduction:
Begin with a quick poll: “Which items in a financial statement would you never omit?” Connect to prior learning on relevance and reliability. Explain that today’s success criteria are to define materiality, apply the tests, and solve exam‑style calculations.
Lesson Structure:
  1. Do‑now (5') – Students list items they consider trivial vs important; share responses.
  2. Mini‑lecture (10') – Define materiality, discuss why it matters, introduce quantitative & qualitative tests.
  3. Guided practice (12') – Work through the sample company numbers, calculate thresholds together, identify the most conservative amount.
  4. Group activity (10') – Teams assess mixed transactions, applying the combined test and justify material/immaterial decisions.
  5. Exam tip recap (8') – Highlight key steps for IGCSE questions and model a short answer.
  6. Check for understanding (5') – Exit ticket: write the materiality threshold for a given profit figure and one qualitative factor that could override it.
Conclusion:
Recap that materiality balances relevance with efficiency, using both numeric thresholds and professional judgment. Review exit tickets to confirm understanding of thresholds and qualitative overrides. Assign homework: a worksheet with three new scenarios requiring calculations and qualitative reasoning.