Using a simple survey of sell-side analysts, auditors, and loan officers, this paper examines whether sophisticated users of accounting information differ in the extent to which they overestimate the value- relevant information in accruals. We infer the extent to which they overvalue accruals from the difference in the weight they give to net income and operating cash flow in assessing firm performance. We find that loan officers are more likely to be overly optimistic about accruals, compared to analysts and auditors. We offer three explanations for this: first, the possibility that loan officers are less sophisticated; second, the lending practice of Korean banks that require collateral; and third, loan officers’ preference for accrual-based financial statements for early-stage firms. The results suggest that the understanding of accrual overvaluation differs between different sophisticated groups of users. These findings are expected to encourage sophisticated market participants to correctly assess the informativeness of accruals and help to reduce the overvaluation of accruals that is widespread in the capital markets.