(Download) "Accounting for a Simulated Investment Portfolio: Active Learning Pedagogy in Intermediate Accounting (Report)" by Academy of Educational Leadership Journal ~ eBook PDF Kindle ePub Free
eBook details
- Title: Accounting for a Simulated Investment Portfolio: Active Learning Pedagogy in Intermediate Accounting (Report)
- Author : Academy of Educational Leadership Journal
- Release Date : January 01, 2011
- Genre: Education,Books,Professional & Technical,
- Pages : * pages
- Size : 222 KB
Description
INTRODUCTION Accounting for Investments is the focus of Chapter 17 in the 12th and 13th editions of the Kieso, Weygandt, and Warfield "Intermediate Accounting" textbook. In order to enhance student learning and to assess students understanding of the material, a three-month project was developed to assign to students in an Intermediate Accounting Class of a southeastern, regional university. The focus of the project is the accounting for investments in equity and debt securities issued by other companies. As part of the project assignment, each student is allocated a fictional amount of $450,000. The students are instructed to investigate the stocks of companies of their choosing and then to simulate purchases of three to four stocks of different companies in each stock portfolio utilizing approximately $150,000 of the fictional funds for each stock fund. The portfolios of the students must include both stock purchases and stock sales for investments classified as available-for-sale securities and trading securities. The remaining fictional funds of $150,000 are to be used to simulate an investment in bonds of one company. The students are required to document the accounting treatment for the purchase transactions, the sales transactions, and the adjustment to fair value for each portfolio at the end of each month during the period of the project. It is up to the individual student to develop their own system of documentation.