This guide is designed to help staff working in a range of early childhood settings to assess the progress of children from 3 to 5 years, particularly those working with "A Curriculum Framework for Children in the Pre-School Year" issued by the Scottish Office Education and Industry Department. Following an introduction, the guide is presented in five parts, each organized in a similar way to offer: (1) key ideas regarding the topic; (2) advice to help staff put ideas into practice; (3) comments from staff describing their approaches; (4) questions to help staff review their present practices; and (5) practical examples. The five chapters detailing each step in the assessment cycle are: (1) "Planning for Effective Learning," including samples of plans related to each area of development and learning; (2) "Observing and Assessing during Staff Interaction," including suggestions for improving observation skills; (3) "Recording: Summarising Success and Progress," including daily recording of observations and portfolio assessments; (4) "Reporting To Promote Partnerships," including suggestions for involving children and parents in reporting and managing transitions from the nursery to the primary school; and (5) "Evaluating: The Heart of Effective Learning," focusing on the use of reflection to improve learning and teaching. (KB)