Accounting for Investments in Common Stock is a 20-minute YouTube, audio-enhanced, PowerPoint presentation. The module provides an overview of accounting for investments in common stock by demonstrating the cost, equity, and fair value methods. Various journal entries are presented.
Type of Material:
In-class or homework
Identify Major Learning Goals:
To gain an understanding of the methods for accounting for investments in common stock using the cost, fair value, and equity methods with some discussion of consolidations.
Target Student Population:
College level upper division or graduate level accounting
Prerequisite Knowledge or Skills:
Fundamentals of financial accounting including knowledge of accounting terminology, concepts, and journal entries are needed.
Evaluation and Observation
The video provides a complete demonstration of the concepts for the purpose intended, an overiview. Concepts covered are current and relevant. References are stated in terms of the origianl FAS statements and new codification. Concepts discussed for each method of accounting for common stock are summarized and integrated well with one exception noted below. The information is presented in a straightforward manner.
The module is 20-minutes long and somewhat complex. Coverage of the fair value method is incomplete.
Potential Effectiveness as a Teaching Tool
This material is useful for teaching an overview of investments in common stock. The presentation identifies learning objectives, and it reinforces concepts progressively by demonstrating the relationships between concepts. Examples have been included to illustrate each method of accounting for investments in common stock. The module also lends itself to developing written assignments.
This video is definitely an overview. Basically, the rules for each category of stock investment are provided. Journal entries for trading and available for sale securities for the first year are briefly shown, with no explanation of the difference in treatment. Debt securities that might be contained in a portfolio are ignored. Finally, the video ends rather abruptly with no summary provided.
Ease of Use for Both Students and Faculty
The module is easy to use, has clear instructions, and is moderately visually appealing. Although the slides are primarily black text on a white background, the information contained on each slide is for the most part reasonable. The vocal quality of the presention is nice. The pace of the presentation is sufficient, as users can pause and rewind with ease. The presention also can be enlarged to full screen without loss of clarity.
Given the material is merely a presentation, it is not engaging or interactive. Slides might be enhanced by incorporating color or graphics within the text to break the monotony of the black text on white background.