16(a). Databases

Leading view

Users are increasingly using databases and will continue to use them mostly for screening purposes and to gain rapid access to aggregate industry information.

* Databases are useful to users because they provide easy access to considerable financial information for a large number of companies [p. 1-5, 7-14]

* However, their use is restricted mostly to screening purposes [p. 3, 5, 10, 12-15] and to accessing aggregate information [p. 5, 11-12, 14] because:

* The information in the databases is not timely [10, 13, 15]

* The information is not comprehensive; for example, footnotes to the financial statements are normally not included in the databases, which makes it more difficult to identify the differences in accounting practices among companies [p. 4, 7-8, 10, 13, 15]

* Adjustments are made in the databases which are not easily identifiable and understandable [p. 3, 6, 13, 15].

Users have expressed a willingness to use databases in the future to assist them with their analytical work on specific companies as the information provided in databases becomes more comprehensive, consistent, reliable, and comparable.

* Some believe that further advances in database technology (for example, the EDGAR system), combined with improvements in financial reporting practices, will inevitably lead to an increase in the different uses of databases [p. 1-4, 10-11].

16(b). Other

Leading view

Timeliness of release of information by companies to users is one of the most critical and sought-after aspects of communication [p. 2-4].