Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the meaning and purpose of the statement of profit or loss
Learning Objective/s:
  • Describe the purpose of the statement of profit or loss.
  • Identify and label the key components of a profit or loss statement.
  • Calculate gross, operating and net profit from given figures.
  • Interpret profitability ratios derived from the statement.
  • Explain how different users (management, investors, lenders, employees, tax authorities) use the statement for decision‑making.
Materials Needed:
  • Projector and screen
  • PowerPoint slides outlining purpose and components
  • Printed handout of a sample statement of profit or loss
  • Calculators
  • Whiteboard and markers
  • Worksheet with practice calculations and a mini‑statement task
 Introduction:

Begin with a headline about a well‑known company’s profit announcement to hook interest. Ask students what information they think investors looked at to judge performance, linking to prior knowledge of revenue and costs. Explain that today they will understand the full statement of profit or loss and how success will be measured by their ability to label components, perform simple calculations and explain user relevance.
Lesson Structure:
  1. Do‑now (5'): Quick quiz on revenue vs profit concepts (individual).
  2. Mini‑lecture (10'): Purpose of the statement and overview of its key components using slides.
  3. Guided walkthrough (15'): Analyse the printed sample statement, calculate gross profit, operating profit and net profit, and derive basic margins.
  4. Group activity (15'): In pairs, students create a mini statement from supplied raw data and compute the three profit figures.
  5. Class discussion (10'): Each group shares how managers, investors and lenders would use their results.
  6. Check for understanding (5'): Exit‑ticket – one sentence explaining why the statement is vital for a specific user.
Conclusion:

Summarise the statement’s structure, its calculation steps and the main users who rely on it. Collect exit tickets to gauge immediate understanding and assign homework: complete the worksheet that requires preparing a full statement of profit or loss for a fictional company and calculate the associated profitability ratios.