This paper explores the reactions ofanalysts and institutional investors to FRS 3 Reporting Financial Performance. Such reactions are elicited through an analysis of submissions to the Accounting Standards Board concerning FRED 1 (on which FRS 3 is based), a review of reactions to FRS 3 in the financial media and by way of a series of interviews with analysts and institutional investors. Those interviewed were generally supportive of FRS 3. The research finds little support among those

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... ed for the arguments made by user groups and others during the development of FRS 3. Based on the discussions with analysts and institutional investors, and other research in the area, the paper argues that, although EPS is an important component of the language of such users, it is not the only word in their vocabulary.