TOPIC/LESSON NAME Statement of Financial Position (SFP)

CONTENT STANDARD
PERFORMANCE STANDARD
LEARNING COMPETENCIES
SPECIFIC LEARNING
OUTCOMES
TIME ALLOTMENT
The learner will be able to understand and appreciate the elements and contetxts of 21st Century Philippine Literature from region. The
learners demonstrate an understanding of account titles under the assets, liabilities, and capital accounts of the Statement of Financial
Position, namely, cash, receivables, inventories, prepaid expenses, property, plant and equipment, payables, accrued expenses, unearned
income, long-term liabilities and capital that will equip him / her in the preparation of the SFP using the report form and account form.s
The learners shall be able to solve exercises and problems that require preparation of an SFP for a single/sole proprietorship with proper
classification of accounts as current and noncurrent using the report form and the account form.
The learners should be able to:
1. identify the elements of the SFP and describe each of them (ABM_FABM12-Ia-b-1)
2. classify the elements of the SFP into current and noncurrent items (ABM_FABM12-Ia-b-2)
3. prepare the SFP of a single/sole proprietorship (ABM_FABM12-Ia-b-3)
4. prepare an SFP using the report form and the account form with proper classification of items as current and noncurrent (ABM_FABM12-
Ia-b-4)
At the end of this lesson, the learners will be able to:
1. reflect on the importance of preparing the SFP.
2. reflect on the separation of current and noncurrent items in the SFP
3. reflect on the difference of the report form and the account form
360 minutes

LESSON OUTLINE
1. INTRODUCTION: Communicating learning objectives and reviewing the accounting equation
2. MOTIVATION: Preparing a personal SFP
3. INSTRUCTION/DELIVERY: Instruct learners about the elements of the SFP
4. PRACTICE: Answering easy, medium and hard questions about the SFP
5. ENRICHMENT:Let the learners reflect on the importance of the SFP
6. EVALUATION: Problem solving questions and preparation of SFP

MATERIALS Chalk and blackboard or LCD with laptop (powerpoint) or acetates

RESOURCES See Appendix

 PROCEDURE MEETING LEARNERS’
NEEDS
Learners might not be able to
 INTROUDCTION (45 MINUTES) remember the terms under
 Communicate learning objectives assets/liabilities due to the
 Present the accounting term time gap between Grade 11 (ABM
o Statement of financial position, permanent account, assets, contra assets, accrued income, prepaid assets, 1) and Grade 12 (ABM 2). Be
liabilities, contra liabilities and etc. ready to define terms and give
 Review previous topics in FABM 1 examples to make learners
remember.
 MOTIVATION (15 minutes)
 Prepare a personal SPF There might be some cases that
a. Ask the learners to get a ¼ piece of paper (any paper will do if they don’t have a ¼ sheet) the result of the learner’s
b. Ask them to write their current savings and everything that they own (clothes, pen, pencil, etc.) computation is zero or even
c. Ask them to write the amount that they owe their friends, family members, parents (tuition) negative. This means that their
d. Tell learners to deduct the amount they owe from the amount they own liabilities to their friends, relatives
e. Associate amounts owned with assets and amount owed with liabilities with the net amount as equity and/or parents are higher than
their assets. Discuss that
 Discuss the importance of the SFP: companies usually have assets
a. Reinforce the difference between assets and liabilities that are bigger than their liabilities
b. Tell the learners that having more assets does not mean that the business is earning and that almost all learners have
bigger liabilities than assets.
 INSTRUCTION/DELIVERY (140 minutes)
 Define the term Statement of Financial Position and introduce the term Permanent Accounts and discuss briefly
 Provide a sample SFP to the learners (powerpoint or acetate or hard copy) as an overview. Teacher can use the sample The teacher can explain the use of
below or find a new one. “as of” by telling learners that
 Differentiate the Report Form and Account Form amounts in the SFP are permanent
 Group accounts under Current Assets, Noncurrent Assets, Current Liabilities, Noncurrent Liabilities and Owner’s meaning that the amounts
Equity are cumulative from the beginning
 Difference of the Statement of Financial Position of a Service Company and of a Merchandising Company of the life of the company.
 Point out the different parts of the Statement of Financial Position
 ALTERNATIVE TEACHING METHOD AFTER LECTURE
Classification between Current and Noncurrent
1. Materials needed: None
2. Learners should be grouped into 4 groups. Each group will start with 100 points.
3. 1st group will be the current assets. 2nd group will be the noncurrent assets. 3rd group will be the current
liabilities. 4th group will be the noncurrent liabilities.
 4. Teacher will enumerate accounts (cash, accounts receivable, equipment, accounts payable, loans payable,
owners’ equity) The teacher can explain the use of
5. For each account, the group where the account should be classified into should stand while the other groups “as of” by telling learners that
should stay seated. For every member who was not able to stand when the group is required to or for every amounts in the SFP are permanent
member who stood when the group is not required to, a point will be deducted from the group. meaning that the amounts
6. Each group should reflect on the mistakes after the activity. are cumulative from the beginning
7. Teacher can give accounts that maybe very specific to due dates to make students think (example: loans of the life of the company.
receivable that is due within 1 year after year-end)

 PRACTICE (30 MINUTES)

 At least 5 Easy questions can focus on the two formats of the SFP. Computation of total assets, total liabilities and
equity using the accounting equation and definition of terms are also part of the easy questions.
 At least 5 Medium questions can focus on the computation of the total assets and total liabilities and equity assuming
that individual accounts are given and the learner will have to identify each account as either asset, liability or equity to
compute for the missing amount. Identification of current and noncurrent items can also be part of Medium questions.
 At least 5 Difficult questions can focus on the computation of individual accounts provided that the SFP is given as a
whole.
 Teacher can ask the class to go back to their groups and give account titles with amounts for the groups to prepare the
SFP. The groups can discuss the results of their group discussions after.
 Another activity can be focused on the school. Let students group themselves and identify the different assets and
liability accounts of the school. From the accounts identified, the groups can prepare the hypothetical statement of
financial position for the school.

 ENRICHMENT (30 MINUTES)

 Teacher can discuss how a company can have a lot of assets but still have very low equity.
 Other important matters:
o Discuss that without the SFP, the company cannot know if it truly owns anything because in case of
bankruptcy, liabilities are paid first.
o Small businesses don’t usually account for their assets and liabilities as long as the owners see that cash is
coming in.
o Discuss the importance of the format
 EVALUATION (20 MINUTES)
2 quizzes
 1. Quiz on the basic info about SFP and the two formats format. This should include theory questions, problem solving
questions and preparation of SFP for a single/sole proprietorship business.
 2. Quiz on the computation of the different parts of the SFP. This should include computations for missing amounts and
identifying current and noncurrent items of the SFP.