Decision usefulness

Term used in financial market law in general and in connection with ad hoc disclosures in particular. Accordingly, information on the financial market is considered useful to an investor if he can draw conclusions from this information with regard to – the amount, – the timing and – the degree of certainty (the possible risk; the expected risk) of future cash flows. – In another view, information on the financial market is considered to be useful for decision-making if it could lead an investor to change his investment decisions as a result. – As a concept of accounting in IAS 1, the requirement to present all business transactions and other events and conditions in an entity in such a way that the addressee is provided with all the necessary knowledge for his or her choice actions. This requirement for consistency is not contradicted by the overriding principle of not applying a prescribed individual provision if it is more likely to mislead than to support the decision of the addressee. – See investor, understanding, ultimate investor, information overload, price manipulation, plain language, freestyle, market manipulation, Pairoff, pervasive constraint, feedback loop, steadiness, substance-over-form principle, circumstances, relevant to valuation, intelligibility.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/