Customer Reviews

Financial Instruments and Institutions: Accounting and Disclosure Rules

5 star:		(2)
4 star:		(0)
3 star:		(1)
2 star:		(0)
1 star:		(0)

 

 

~~~~~You are wrong if you think that this is a pure accounting or finance book. I am taking Profoessor Ryan's class of "Finanial Instruments and Financial Institutions" in NYU right now. The stength of Professor Ryan in the book is his in-depth understanding and effective description of economics, finance and accounting issues. So many case studies covered in the book blend with macroeconomic events, financial implication and accounting disclosures. Therefore, you need some background~~ knowledge of accounting and finance to fully take advantage of his insights in the book. This book discusses the yield curve, interest risk, credit and market risks, and fair value accounting for financial instruments. It analyzes the finacial and accounting issues for thrifts, mortgage bank, securitizations, commercial banks, derivatives and hedging, lessors and lease accountings. After reading through the book, you will have clear pictures about each finnancial instruments and institutions.~~ You won't be afraid of these topics any more. This book can be used as an advanced textbook for finance or accouting majors in business school, or a reference book if you are interested in financial and accounting issues of the above topics.~

The chapters are written in an organized fashion with a strong introduction allowing for the readers to re-familiarize themselves before reading (moving onto) the more dense material. The topics covered require readers to be familiar with some of the basic accounting principles beforehand. However the introduction allows for readers to continue onto the denser, less familiar topics without much difficulty and pain. The topics require dedication (as indicated by another review) on the part of the readers in order for mastery--but this is due to the nature of the topics covered rather than the writing. The examples used allow for readers to gain exposure on how the principles apply in context--which is a definite plus.

The book gives insights on accounting topics never fully explored in the typical undergraduate or graduate business education--the importance of the quality of disclosures and what can be mined from those financial statements was truly a surprise for me. The author's insights and thoughts on current accounting issues and belief in fair value accounting were convincing and well supported.

The material is not user-friendly in the fact that it requires a certain amount of exposure and knowledge in areas such as financial disclosure, basic economics/finance etc. The writing style is user-friendly as it engages readers in its conversational approach.

I too have taken Prof. Ryan's class at NYU Stern. The accounting department at Stern is very good (especially Dan Gode) and Prof. Ryan is no exception. He know's his subject very well, take that as a given, and the book is an expression of that thoroughness.

Fair value accounting is well covered and there is a clear vein running through the book that pertinently questions what the right method of accounting should be in various contexts. A wide range of topics are covered and some are explored with more insight and depth than any other accounting book I have seen.

Had the book been better laid out, with more concise and pertinent examples it would have reached four stars. The style of writing is heavy and only the most dedicated readers will be able to sustain themselves through it. Presentation as a result is dry and wordy and, frivolous as it may sound, cries out for more color and visual organization. The publisher really dropped the ball should have recognized this and made the book more accessible, doing so would have given it near cult status for students, investors, analysts and academics.