Can anyone recommend a book to understand financial statement analysis for someone with no accounting background? I tried going through the CFA L1 volume on financial statement analysis, but found it overwhelming: too verbose & comprehensive, and seems to assume some previous accounting knowledge. Looking for something that explains things well, but is more succinct and doesn't assume a previous understanding of accounting. Something like Hull for derivatives. This isn't for the CFA test, just for my own curiosity.Thanks

I don't really know anything, but what do others think of The Intelligent Investor by Benjamin Graham and/or One Up On Wall Street by Peter Lynch? I don't know how highly regarded either of these is considered, but each did have a pretty accessible section on reading financial statements, if I remember correctly.

cfa book is about the BEST there is. if you find the CFA books "verbose", you will find all of the real FSA books about 5-10X MORE verbose, ha ha.

Ok..I teach that class...a) I do use the CFA Book Level I as one of my main reference (Schweser's version), I wont dare to say it is "verbose" but, I do agree that to someone without accounting background might seem, a liittle over his/her head. Not that it is, but might look that way..on 1st impression.b) That being said, my textbook is "Financial Statement Analisys"by K.R. Subramanyam & John J. Wild McGraw-Hill. 10th Ed 2009.c) I dont think I have found the "Hull of FSA"...and maybe there is none. Reason being that course (ergo, the textbooks for it) tends to be an advanced accounting course; one taken after the student has gain a good deal of technical information (Usually the student has approved: basic and intermmediate accounting, where intermmediate has a lot of financial accounting discussed; in my case I teach MBA's, a few of them are already CPA's).So, these texts (even the well written ones, as the one I used) has the inherent flaw to be writen (here and there) as if the reader is already an expert.I do have get my hands in a few VERY basic FSA books, such as 1) Financial Statements Demystified:As Self-Teaching Guide by B.K. Kramer & C.W. Johnson McGraw Hill 2) Financial Statement: Revised and Extended Edition by Thomas R. Ittelson Careere Press...etc.Those are very basic books, not texts...and can sure help as they dont assume you know anything; however, they dont cover all that you might need to know..so, they are not "Hulls for FSA'.

QuoteOriginally posted by: Maeloa) I do use the CFA Book Level I as one of my main reference (Schweser's version), I wont dare to say it is "verbose" but, I do agree that to someone without accounting background might seem, a liittle over his/her head. Not that it is, but might look that way..on 1st impression.not sure if the original poster meant the schweser notes or the official CFAI readings.The schweser notes would be much more compactIf he really has no accounting background and wants to take remedial measures, he might try something like Schaum's Financial Accounting (one of the Schaum's outline series, which will only set him back about $15).He'll still have to read the CFAI readings afterwards, but I guess he'll understand them betterp.s.: to the original poster: If you're using the CFAI readings, order the Schweser notes (from their eponymous website) instead: they'll save you a lot of time (and sell the CFAI ones on ebay or somewhere to get soem of the cost back) (edit: I'd forgotten that since I took the exams, CFAI now include their readings in the registration fee, which was increased significantly to reflect this)