In this paper we examine the association between accruals quality and the informativeness of stock prices. We measure accruals quality by the standard deviation of residuals of current accruals which were not converted into operating cash flows in the prior period, current period and the following period. We measure stock price informativeness of future earnings by the future earnings response coefficient (FERC), which is the association between current period stock returns and future earnings. Accruals quality captures the information risk about future cash flows and, as a result,future earnings. There are prior studies which documented the evidence that accruals quality was priced by investors and poor accruals quality is associated with high cost of capital (Francis et al., 2005; Chen, Dhaliwal and Trombley, 2008; Kim and Qi, 2010). Kim and Qi (2010) also report that accounting quality and stock returns of firms with poor accruals quality are more vulnerable to future market condition changes. These results lead to the expectation that stock price would be more informative about future earnings for firms with high accruals quality due to the lower information risk. We focus on the accrual component of earnings for two reasons. First, the accrual component of earnings is subject to greater uncertainty than is the cash flow component. Second, accruals quality is the measure of information risk associated with a key accounting number- earnings since accruals quality tells investors about the mapping of accounting earnings into cash flows. We test that a firm’s accruals quality can bring the future forward by revealing information in the current period that changes expectations about future earnings. We also investigate whether the pricing of accruals quality differs depending on the source of accruals quality. Innate accruals quality is driven by the firm’s business model and operating environment, while discretionary accruals quality is subject to management interventions. Since discretionary accrual choices reflect both opportunism and performance measurement, we predict distinct price informativeness,i.e., lower average price informativeness for discretionary accruals quality than for innate accruals quality. We analyze all the firms listed on Korea Stock Exchange and KOSDAQ for the period 1997~2007. We find that there is a significantly positive relation between a firm’s accruals quality and the amount of future earnings news reflected in the current annual return. Higher accruals qualities are associated with a greater future ERC. We also find that both innate accruals and discretionary accruals are positively related to the amount of future earnings news reflected in current returns. Furthermore, there was significant difference between innate accruals and discretionary accruals in the magnitude of FERC. It appears that the acrruals quality matters, not the source of accruals. Our findings remain significant after controlling for factors known to influence the earnings response coefficient in a simple regression of returns on current earnings, namely, size, presence of loss, growth, and earnings volatility. This paper has several contributions to the accounting literature. First, we document that high accruals quality allows investors to better predict future earnings. This is adds to the accruals literature where prior studies focused on accruals anomaly, information risk, or cost of capital. Second, this study shows that the usefulness of accruals in predicting future cash flows varies with the accruals quality, while prior studies only show that accruals provide useful information about future cash flows (Dechow, 1994; Dechow et al., 1998; Barth et al.,2001). Third, this study is the first attempt to examine whether investors take into information risk imbedded in account accruals quality and utilize such knowledge in their investments in anticipation of future earnings. We expect more studies by utilizing the notion accruals quality in the financial reporting and auditing area to address the important accounting question- the role of accounting information.