Customer Reviews

Accounting for Investments, Equities, Futures and Options (Volume 1)

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Mr. R. Venkata Subramani has written a very timely book on accounting of financial instruments (i.e. Equities, Futures and Options). This practical book treats this complex subject in a way that gives clear guidance on the subject. With 14 Chapters in total, this is the most comprehensive book I have ever come across that discusses the accounting treatment and disclosures for a wide array of financial instruments, i.e. Equity Investments, Equity Derivatives, Equity Index Futures, Equity Stock Futures, Equity Call Options, Equity Put Options, Contract for Difference, Short Equity Investments, and ADR/GDR Investments. While accounting for such financial instruments is neither simple nor widely understood, each chapter in this book is accompanied by illustrations to explain the concepts discussed, supported by the use of journal entries and T-Accounts that are clearly explained. Through the many interesting illustrations, Mr. R. Venkata Subramani skilfully covers the accounting treatment in an extremely lucid, intelligible and concise manner.
In summary, this is one of the few accounting books available on the market that make a complex subject understandable and even enjoyable. I would strongly recommend this book to anybody wishing to understand how financial instruments covering Equities, Futures and Options are treated by the accountants. Also, I sincerely look forward to seeing Mr. R. Venkata Subramani writing a book on currency swaps and I will certainly be the first few to grab the book.
Accounting for Investments: Equities, Futures and Options

Accounting for Investments is a reference book profusely illustrated with valuable examples.

This book contains a right mix of information and application.

For a technology person like me in the financial services industry, this book has effectively supplemented by providing specific guidance on practical issues that I find day to day in most of my financial projects.

Each chapter deals with one type of financial product and begins by introducing the concepts about the financial product itself. The explanation provided by the author covers just the right amount of information needed. Subsequently each product is analyzed threadbare in terms of various trade life cycle events.

The trade life cycle events are dealt with from the accounting perspective as opposed to the settlement or risk perspective which probably is the defined objective of the book.

Each and every event in the trade life cycle is covered by giving a simple example of such event and the journal entry that is passed during such event.

I like the illustrations that are given in the book. The illustrations are to the point and give a very practical approach to deal with real life situations. The illustrations that give the journal entries and the general ledger entries. The P/L statement and Balance Sheet for each illustration actually provides a completeness to the problem as this one invariably clears my several doubts of presentation. The trial balance given for all these problems is much appreciated.

Some of the highlights include the dealing with complex computations related to FX translations and Revaluations particularly involving different trade currencies. these are very clearly laid out, as it is applied.

In a nutshell I liked the following aspects of the book:
Different types of equity investments, long, short, held for trading, held as available for sale and transfer of shares between these categories and its financial impact
Equity derivative products - stock futures, index futures, put options, call options
Contract for difference - I could get a lot of accounting stuff in this book and I have found it hard to get from any other source
ADR/GDR - the concepts of conversion of the securities from ADR market to the local market etc and its accounting treatment
Hedge Accounting: Hedge accounting for equity options. I thought it is highly complex but the author has simplified the subject very succinctly.

Overall I think this is a very practical reference book.

The text serves as a comprehensive guide to accounting practices for equities, futures and options. The coverage is in-depth. Specifically, it is the only text I have considered which covers the accounting rules for the above mentioned asset classes in such detail. The in depth illustrations provided in the text is commendable. It is in sufficient detail and developed in a step by step fashion which makes it very easy to comprehend. It treats an extensive number of topics in a clear and concise manner. It covers the instruments, the players, and the principles of accounting with an excellent blend of theory and practice