Instructional Planning

(The process of systematically planning, developing, evaluating and managing the instructional process by using principles of
teaching and learning - D.O. 42, s. 2016)
Detailed Lesson Plan (DLP) Format

School Balasan National High School Grade Level Grade 11

Teacher Amur Jessica B. Fuentes Learning Area ABM/FABM1
Time & Dates 10:45 – 11:45 am (February 5, 2024) Quarter 3rd Quarter

I. OBJECTIVES
A. Content Standards The learners demonstrate an understanding of the definition, nature, function,
and history of accounting.
B. Performance Standards The learners are able to:

a. Cite examples in which accounting is used in making business decisions

C. Learning Competencies / Objectives. The learner define accounting and describe the nature of accounting.
Write the LC code for each ABM_FABM11-IIIa-1; ABM_FABM11-IIIa-2

II. CONTENT What is accounting and its nature?

III. LEARNING RESOURCES
A. References FABM1 Module
1. Teacher’s Guide pages
2. Learner’s Materials pages
3. Textbook pages
4. Additional Materials from
Learning Resource (LR) portal
B. Other Learning Resources
V. PROCEDURES

Teacher’s Activity Student’s Activity

Introductory A. Preliminary Activities
Activity Prayer, Greetings, checking of attendance and setting of
classroom standards

 Review (No previous topic)

Answers:
 Motivation
Locate the given words in the grid provided. Write your answers
on ¼ sheet of pad paper.

Activity/Strategy Direction: Watch the video intently and after I will ask you a series Students will write answers in
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 of questions. their notebook.

https://www.youtube.com/watch?v=ABjCVTBnO_U

Write your answers in your notebook.

Questions: Answers:
1. What is the main focus of bookkeeping? -Collecting and organizing
financial data.
2. Who benefits with financial accounting information? -Third party users
3.What is the primary difference between financial and -Managerial accounting is
managerial accounting? confidential
Analysis Our topic for today is all about Accounting and its nature.

Based on the video, accounting is primarily concerned with?

Accounting is primarily
Yes, Ian? concerned with analyzing,
organizing, and collecting.

Based on the video Ma’am, the

How about, the main focus of financial accounting main focus of accounting are
pricing, competition, strategic
information and financial
statements.

Very good! All of your responses are correct. Let’s proceed to our
topic.

Abstraction Accounting is typically referred to as the “language of

business”. It is because Accounting is used as a means through
which information about a business entity is communicated to
interested users. These users may be internal (top management,
board of directors, employees) or external (creditors, borrowers,
government regulatory agencies).

Define Accounting

The two major definitions of Accounting are as follows:

The American Accounting Association (AAA) defines

Accounting as “the process of identifying, measuring, and
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communicating economic information to permit informed
judgments and decisions by the users of information.” Based on
this definition, there are three (3) important activities in the
accounting process:

A. Identifying – This pertains to recognizing or not recognizing the

business activities to be accounted for. As a rule, transactions
and events are recognized only if they have effects on the
elements of the basic accounting equation (assets, liabilities and
owner’s equity). If a transaction has no effect on the afore-cited
elements, then it is not given accounting recognition. Identifying is
the analytical phase of accounting.

B. Measuring – This covers the assignment of monetary amounts

to economic transactions and events. All accountable
transactions are expressed in terms of Philippine pesos which
may be based on the following: (1) Historical cost or past
purchase exchange price (2) Current replacement cost (3)
Realizable value or current selling price (4) Present value, the
discounted value of the future net cash inflows or future exchange
price. Measuring is the technical component of accounting.
C. Communicating – This involves the preparation of accounting
reports and the subsequent distribution thereof to users of
accounting information. It is through this communicating process
that accounting is considered as the language of business. This is
the formal component of accounting.

The American Institute of Certified Public Accountants

(AICPA) defines Accounting as “the art of recording, classifying,
and summarizing in a significant manner and in terms of money,
transactions and events which are in part at least of a financial
character and interpreting the results thereof.” Based on the
afore-quoted definitions, the following important principles are
noteworthy:

1. Accounting is both an art and a science

As an art, accounting involves the application of relevant skills
and creative judgement. One has to be trained in this discipline to
be able to properly perform accounting tasks. As a science,
accounting is a systematic process that involves a series of steps.
However, while it is a body of knowledge, it is not an exact
science since the rules and principles constantly change and
routinely evolve.

2. Accounting involves distinct but interconnected phases

Based on the given meaning by the AICPA, accounting
involves four phases: (i) Recording, also known as journalizing, is
the act of committing into writing or keeping records of business
transactions; (ii) Classifying involves grouping similar transactions
into respective classes or groups; (iii) Summarizing refers to the
preparation of accounting reports, or commonly known as
“financial statements”; and, (iv) Interpreting, which is the process
where users of said reports analyze the items contained therein.

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3. Accounting deals only with transactions and events having
financial character.
A transaction has financial impact when it affects the assets,
liabilities or owner’s equity. For instance, the act of hiring an
employee is qualitative in nature; since it has no financial
character, it is not recorded. However, the payment of salaries of
the employee after rendering services is quantitative in nature,
because it has financial value.

4. In accounting, business transactions are expressed in terms of

money.
Accountable business transactions are assigned
corresponding amounts when processed. Using the example
above, the amount of salary paid to the employee should be
reflected in Philippine currency.

5. Accounting involves interpreting the results in the financial

statements
In order to give meaning to the figures reflected in the reports,
information is interpreted and understood. The amounts, figures,
and data in the financial reports have meanings that are useful to
the users. These data are used for effective decision-making.

Features of Accounting

The basic features of accounting are as follows:

Accounting is a service activity.

Being a service-oriented industry, accounting practitioners
render intangible effort. This is in contrast to a merchandising or
manufacturing business, which sells goods and tangible products.
Specifically, accounting provides decision makers with
information for decision-making through financial reports.

Accounting is both an art and a discipline

Accounting is an art since it requires specialized skills in
recording, classifying, summarizing and finalizing accounting
information. Accounting necessitates the
use of techniques and methods in presenting financial findings.
Moreover, Accounting is also a discipline considering that is a
body of knowledge with a systematic method. It adheres to
certain standards and professional ethics which comprises of
rules, principles, concepts, conventions, and standards.

Accounting is a systematic process

A process entails a series of steps to achieve a particular aim.
In like manner, Accounting follows a step-by-step process in
collecting, processing and
communicating financial information. This includes recording,
classifying, summarizing and interpreting financial data.

Accounting is a means and not an end

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 Accounting is not the end-result; instead, it is a tool to achieve
said result. Accounting aims at providing financial statements of
an entity in order for users to
make informed decisions.

Accounting deals with financial information and transactions

Accounting records financial transactions and data, classifies
these and finalizes their results given for a specified period of
time, as needed by their users. All non-financial data are not
given accounting recognition.

Accounting is an information system

Accounting is characterized as a storehouse of information. It
provides data to users intended to be utilized for reporting and
analysis. As a service function, it collects processes and
communicates financial information of any entity. This discipline
of knowledge has evolved to meet the need for financial
information as required by various interested groups

Functions of Accounting

The main functions of accounting can be summarized as follows:

To provide systematic record of business transactions

Transactions should be recorded by entering all engagements
in the books of accounts. The recording is done in a systematic
manner to reflect proper
chronology of transactions and accuracy of the amounts therein.
This is to facilitate of ease of understanding for users. Without
systematic recording, users cannot appreciate the recorded
transactions despite the wealth of information contained therein.

To safeguard the properties of the business

Another function of accounting is to ensure that all resources
of the enterprise are duly accounted. The accounting records
serve as evidence of a property existence (where it is located)
and valuation (how much it is worth). For instance, if the
accounting records show that there are four sets of computer
equipment in the
accounting records, any excess and deficiency therein will be
noticed immediately and will be evaluated as a discrepancy. This
prevents fraud, deceit and misappropriation in the organization.

To communicate results to both internal and external users

Various entities rely on accounting records for different
purposes. The accounting reports produced at the end of each
period are not only used by external parties
(potential investors, government agencies), but also by internal
users (the management, employees) in their decision-making
function.

To meet legal requirements

In the Philippines, businesses are generally required to submit

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 periodic reports to regulatory agencies. The reports are used by
these agencies to monitor compliance with laws and regulations.
This is done to protect the public interest.
Application Based on our discussion answer these questions: Students will put their answer in
½ crosswise paper.

1. How does accounting contribute to decision-making processes Accounting contributes to

decision-making processes by
providing decision makers with
information through financial
reports.
2. How do accounting records help in preventing fraud, deceit,
and misappropriation within an organization? Based on our discussion Ma’am
By serving as evidence of the
existence and valuation of
property.
Thank you all for your responses. I’m assured that you have fully
understand our lesson.
Assessment Choose the correct answer and write it in your notebook.
1. Which of the following is not a feature of accounting?
a. Accounting is a service activity
b. Accounting deals with financial information and transactions
c. Accounting is not a means but an end
d. Accounting is an information system

2. Which of the following is not a function of accounting?

a. To provide systematic record of business transactions
b. To safeguard the properties of the business
c. To communicate results to internal users only
d. To meet legal requirements

3. The following are the purposes of systematic recording, except:

a. To reflect proper chronology of transactions
b. To ensure accuracy of the amounts recorded
c. To facilitate of ease of understanding
d. To commit fraud in recording

4. The financial reports are generally used by:

a. Both internal and external users
b. Internal users only
c. External users only
d. Neither internal nor external users

5. Accounting is a tool to achieve a result. This describes:

a. Accounting is an art
b. Accounting deals with financial information and transactions
c. Accounting is an information
d. Accounting is a means not an end
Assignment/Agreement (
minutes).
Fill-in below any of the four
purposes
 Reinforcing /
strengthening
the day’s

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 lesson
 Enriching /
inspiring the
day’s lesson
 Enhancing
/
improving
the day’s
lesson
Preparing for the new
lesson
V. Remarks
VI. Reflection
A. No. of learners
who earned 80% on
the formative
assessment.
B. No. of learners who
require additional
activities for
remediation.
C. Did the remedial
lessons work? No. of
learners who have
caught up with the
lesson.
D. No. of learners who
continue to require
remediation
E. Which of my
teaching strategies
worked well? Why
did these work?
F. What difficulties
did I encounter
which my principal
or supervisor can
help me solve?
G. What innovation
or localized
materials did I
use/discover which I
wish to share with
other teachers?

Prepared by: Checked and Reviewed by: Approved:

AMUR JESSICA B. FUENTES JASMIN C. CABALLERO LYVI S. ALFIN

Teacher II Head Teacher III Principal III