World Accounting Report
Investors’ use of accounting information
Financial reporting by listed companies is based on the
assumption that the information is useful to and used by investors, but it is
extremely difficult to demonstrate unequivocally which pieces of information
are useful and what they are used for. A study sponsored by EFRAG suggests that
accounting information is used more by investors looking to value the company
as opposed to evaluate management performance, but is important to both. Both
also use other sources of information.