Reviews
This clearly written volume offers a practical analysis of Generally Accepted Accounting Principles as well as practical applications of GAAP for financial and credit analysts. The book offers a survey of basic financial statements, related footnote disclosures, and the general concepts underlying financial statements, with the exposition of GAAP made without the use of mechanical bookkeeping procedures.
For each financial and reporting issue, Sannella provides an analysis of the standard solution, current accounting practices, and numerical illustrations, and where possible, provides an analytical restatement that reflects an alternative treatment.
A key aspect of this book is that there are no debits and credits which makes the book accessible to non-financial managers. Adding to the strengths of the book is its readable style and its limited use of technical jargon.
It is lucid and easy to read. There are illustrations from real-life corporate disclosures that should add to readers’ grasp of corporate financial reporting. The book directly addresses critical issues faced by investment and credit analysts in their day to day decisions.
Most topics are linked directly to an application in financial modeling. The presentation is made from the user’s perspective and maybe viewed as taking a defensive position with regard controversial accounting and reporting policies found in current practice.
The unique aspect of this book is that it is written by an experienced accountant and instructor who has worked with investment bank and commercial credit analysts for almost 25 years. This gives the work a unique perspective in that provides answers to actual questions asked by members of the financial community. In time, this book will become the standard desk reference for financial and credit analysts.
The author has public accounting experience as an auditor and served as a consultant to many corporations and the Federal government. In addition the author has over 29 years teaching experience at the university level and over 23 years experience in developing and teaching commercial and investment bank training programs.
