The Personal Financial Reporting Project: A Student-Based Comprehensive Learning Project

Abstract

ABSTRACT The Personal Financial Reporting Project is designed to help students better understand the basics of financial reporting by applying class concepts to their own financial situations. Through a series of monthly assignments, completed over a two- or three-month period, students identify their personal assets and liabilities, determine which of these are included within a balance sheet, develop an accounting system to track changes to their assets and liabilities and recognize revenue and expenses, prepare financial statements, and develop significant accounting policies. After the second assignment, each subsequent assignment builds on the prior part. As such, students must correct errors in the earlier parts to accurately finish the next assignment. The complete project is made up of five parts; however, during some semesters, the project was condensed to include only Parts 2 through 4. The latter approach may be very appropriate for programs on the quarter system. Students report the project enhances their understanding of accounting concepts, improves their ability to prepare accounting reports, helps them understand the articulation concept, and provides them with additional insight into their personal financial situation. The project motivates both top-tier students and those who do not perform as well on exams and quizzes.