Accounting

Financial Shenanigans (5 Stars)

The book is an easy read, and does not require detailed knowledge of accounting in order to get value out of it.  For fundamental investors, I recommend this book, with the proviso that it only works with non-financial companies.  Financial companies are more complex (they are all accruals — the cash flow statement is not very useful), and can’t easily be analyzed for earnings quality from looking at the financial statements alone.

To buy the book: Financial Shenanigans

Quality of Earnings (5 Stars)

Any investor could benefit from the book, particularly those that analyze fundamentals.

If you want to buy the book, you can buy it here: Quality of Earnings

Early Warning and Quick Response (4 Stars)

Users of financial statements that want to think a little more broadly about accounting should buy this book.  Note that the sticker price of this book is stiff, at roughly $1 per page.  Accounting mavens, whether they like the ideas should buy the book so that they can understand the issues involved.  Even if they never become the standards, the ideas are the exemplar for fair value, and represent the opposition view in accounting.

If you want to, you can buy it here: Early Warning and Quick Response: Accounting in the 21st Century (Studies in the Development of Accounting Thought).