Lesson Plan

• Describe why profit measurement is essential for evaluating business performance.
• Explain how loss measurement informs cost control and legal reporting.
• Identify the key purposes of profit‑and‑loss information for decision‑making, financial planning, and external reporting.
• Apply a simplified profit and loss statement layout to interpret financial results.

• Projector and screen
• Whiteboard and markers
• Printed handouts of a simple P&L statement
• Worksheet with a case‑study scenario
• Calculators
• Kahoot/quiz platform for quick checks

Begin with a quick poll: “If you owned a shop, what would you need to know about its money flow?” Connect responses to prior knowledge of revenue and expenses. Explain that today’s success criteria are to state why measuring profit and loss matters and to interpret a basic P&L statement.

1. Do‑now (5 minutes): Students list reasons a business would want to know its profit or loss; share a few responses.
2. Mini‑lecture (10 minutes): Present the five key purposes (performance evaluation, decision‑making, financial planning, external reporting, control/accountability) using slides and the provided table.
3. Guided practice (12 minutes): Work through a simple P&L example on the board, filling in missing figures and discussing each component.
4. Group activity (10 minutes): In pairs, students analyse a short case study and identify how profit/loss information would influence business decisions.
5. Check for understanding (8 minutes): Quick Kahoot quiz or exit‑ticket question: “Name two ways profit information helps external stakeholders.”
6. Summary & reflection (5 minutes): Teacher revisits the learning objectives and asks students to paraphrase one purpose of measuring loss.

Recap the five purposes of measuring profit and loss and highlight how the completed P&L example demonstrates these ideas. Students complete an exit ticket stating one new thing they learned and one question they still have. For homework, assign a short worksheet to calculate profit or loss for a different business scenario.