Foreword by Mr. T. N. Manoharan Former President of The Institute of Chartered Accountants of India
Accounting for Financial Instruments is a complex exercise in view of the varied kind of instruments that are emerging in the market in the recent past. The flow of funds across the borders in the form of financial instruments is ever increasing in the global scenario. Equity, Futures and Options have trade life cycle and accounting treatment on such life cycle from the front office and back office perspectives call for detailed elucidation. Hardly there is any book that provides guidance on these matters. This book is a commendable effort to fill the knowledge gap that exists in the accounting of financial instruments.
International Financial Reporting Standards (IFRS) encompassing IAS 32, IAS 39 and IFRS 7 deals with the principles involved in recognition, measurement, disclosures and presentation of financial instruments. The Institute of Chartered Accountants of India (ICAI) has come out with corresponding Accounting Standards (AS) viz., AS 30 on ‘Financial Instruments – recognition and measurement’; AS 31 on ‘Financial Instruments – Presentation’ and AS 32 on ‘Financial instruments – disclosures”. In sum and substance, the Indian Accounting Standards are the same as that of the relevant IFRS. This book deals with the principles laid down in the IFRS and in relevant places deals with similarities and differences between US GAAP and IFRS. In that sense, one can say without fear of contradiction, that this book is a comprehensive treatise of the title.
Mr. R. Venkata Subramani is a learned person, having immense knowledge and expertise on the matters dealt with in this book. The benefit of his hands on experience and in depth practical exposure is reflected in the illustrations given in the various chapters of this book. With the tremendous growth witnessed in the Investment Banking Institutions, Hedge funds and several other financial institutions, this book will become handy for understanding and capturing the entire trading process of the financial instruments. The author, Mr.R.Venkata Subramani, is also known as a ‘Technology wizard’. Consequently, the lucid exposition that he has adopted would help automating the system of proper accounting of the entire trade cycle of each of the financial instruments.
Investment bankers, financial institutions, dealers, brokers, professionals and other investors would find this book immensely useful in the day-to-day operations, as various concepts unique to the financial instruments are explained in this book besides laying down the accounting treatment in a detailed manner. This book will be a useful addition to any library, which serves as a source of knowledge and information with reference to various financial products dealt with in the market. Mr.R.Venkata Subramani has done a splendid job in authoring this book in order to share wealth of information and knowledge on the subject.