This report, part of a series of documents which describe assessment of student learning in various curriculum areas from prekindergarten through grade 12 focuses on assessment as practiced in early childhood education in South Carolina. An overview is provided of current practices used in the first few years of schooling that are now being questioned. Subsequent sections describe the early childhood perspective on how children learn, and include guidelines for appropriate curriculum and content in early childhood programs. A comprehensive discussion of assessment practices in early childhood education, including traditional methods and alternative approaches, follows. Among the observational methods discussed are anecdotal records, checklists and inventories, rating scales, and photographs and audio/video recordings. A discussion is also provided of assessment portfolios. A brief summary is given of selected alternative assessment projects and programs in early childhood. Four appendixes contain: (1) guidelines for appropriate curriculum content and assessment; (2) guidelines for the use of standardized tests; (3) observation forms; and (4) examples of a first grade reading record. Contains 25 references. (SLD)