Being a pre-school, we do not fill in the foundation stage profile - but I do know a neighbouring borough do expect a scaled down version for each child to be completed before they receive any funding! Just the PSE and PD areas.
We have continous provision sheets displayed so staff and parents are always able to see what resources/activities benefit certain areas of learning.
We try to directly involve children in the planning - but to be honest it doesn't seem to happen much!! We're a pack-away group, and the children tend to be very 'here and now' and if we ask if they want other resources out often they look at us as if we're mad!!! We have tried a book with all resources photographed so they can look and chose......... but they like to just take the book into the book area and just 'read' it!
But we watch and observe........ if we see a child using a resource well- and we feel we can extend the learning - often we just go and collect other resources and place them within 'eyeview' of the child, we try and avoid taking over the play by leading in the direction we feel it should go.