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The Decision Usefulness of Financial Accounting Measurement Concepts: Evidence from an Online Survey of Professional Investors and their Advisors


  • Joachim Gassen
  • Kristina Schwedler


In their current framework project, the IASB and the FASB identify decision usefulness as the objective of financial reporting. Unfortunately, accounting research has neither yet come up with an undisputed measure of decision usefulness, nor with a satisfying method to rank competing measurement concepts, such as fair value or historical cost, with regard to their relative decision usefulness. Thus, assessing the decision usefulness of different accounting measurement concepts ultimately poses an empirical question. We provide evidence to this question by surveying an important user group, namely professional investors and their advisors, about their opinions on the decision usefulness of different accounting measurement concepts. We find that our respondents clearly differentiate between mark-to-market and mark-to-model fair values. While they consistently rank mark-to-market fair values as most decision-useful, they generally rank mark-to-model fair values as least decision-useful. In addition, the ranking differs across asset classes.

Suggested Citation

  • Joachim Gassen & Kristina Schwedler, 2010. "The Decision Usefulness of Financial Accounting Measurement Concepts: Evidence from an Online Survey of Professional Investors and their Advisors," European Accounting Review, Taylor & Francis Journals, vol. 19(3), pages 495-509.
  • Handle: RePEc:taf:euract:v:19:y:2010:i:3:p:495-509
    DOI: 10.1080/09638180.2010.496548

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    Cited by:

    1. Jannis Bischof & Holger Daske & Christoph Sextroh, 2014. "Fair Value-related Information in Analysts’ Decision Processes: Evidence from the Financial Crisis," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 41(3-4), pages 363-400, April.
    2. Bauer Kinga, 2015. "Impact of Owner-Occupied Property Valuation by Historical Cost on Fixed Assets Value at Bankruptcy Risk," Management and Business Administration. Central Europe, De Gruyter Open, vol. 23(2), pages 3-23, June.
    3. Knauer, Thorsten, 2010. "Relevanz, Qualität und Determinanten der externen Unternehmenspublizität zum Humankapital: Eine empirische Bestandsaufnahme der HDAX-Unternehmen," Arbeitspapiere des Lehrstuhls für Betriebswirtschaftslehre, insbesondere Controlling 13-1, University of Münster, Chair of Management Accounting.
    4. Fülbier, Rolf Uwe & Klein, Malte, 2013. "Financial accounting and reporting in Germany: A case study on German accounting tradition and experiences with the IFRS adoption," Bayreuth Working Papers on Finance, Accounting and Taxation (FAcT-Papers) 2013-01, University of Bayreuth, Chair of Finance and Banking.
    5. repec:eee:advacc:v:35:y:2016:i:c:p:62-74 is not listed on IDEAS
    6. Christoph Kuhner & Christoph Pelger, 2015. "On the Relationship of Stewardship and Valuation—An Analytical Viewpoint," Abacus, Accounting Foundation, University of Sydney, vol. 51(3), pages 379-411, September.
    7. repec:eee:advacc:v:38:y:2017:i:c:p:15-29 is not listed on IDEAS

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