Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: prepare simple inventory valuation statements
Learning Objective/s:
  • Describe the components of inventory cost and net realizable value (NRV).
  • Apply the lower‑of‑cost‑or‑NRV rule to determine the appropriate valuation of closing stock.
  • Prepare a simple inventory valuation statement and calculate cost of goods sold (COGS).
  • Identify common errors in inventory valuation and correct them.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with sample data
  • Calculator or spreadsheet software
  • Accounting textbook or reference sheet on inventory valuation
  • Example inventory valuation statement handout
  • Whiteboard and markers
 Introduction:
Begin with a quick question: why does the value of inventory matter for a business’s profit and tax position? Review that inventory is a current asset and recall the basic cost components covered previously. Explain that today students will learn to apply the lower‑of‑cost‑or‑NRV rule and produce a complete inventory valuation statement, which will be the success criteria for the lesson.
Lesson Structure:
  1. Do‑now (5’) – Students answer a short recall question on inventory cost components displayed on the board.
  2. Mini‑lecture (10’) – Explain cost of inventory, NRV, and the lower‑of‑cost‑or‑NRV principle using the suggested flow diagram.
  3. Guided practice (15’) – Work through the example statement step‑by‑step, calculating COGS and discussing the write‑down decision.
  4. Independent activity (15’) – Students complete a worksheet with new data, preparing their own inventory valuation statement.
  5. Check for understanding (5’) – Peer review of statements and teacher clarification of common mistakes.
  6. Summary & exit ticket (5’) – Learners write one key takeaway and answer a quick question on the lower‑of‑cost‑or‑NRV rule.
Conclusion:
Summarise how the lower‑of‑cost‑or‑NRV test ensures assets are not overstated and how the statement links to the profit‑and‑loss account. For the exit ticket, learners note the step they found most challenging. Assign homework to complete a similar valuation using a different data set from the textbook.