USERS' NEEDS SUBCOMMITTEE

DATABASE OF MATERIALS ON USERS' NEEDS FOR INFORMATION

AS OF JUNE 22, 1993

INTRODUCTION

Objective

The objective of this database is to organize what investors and creditors (users) have indicated about their needs for information in a manner that best facilitates subsequent analysis. In meeting that objective, we have followed certain guiding principles:

1. Capture all significant points from the direct documents, including users' rationale supporting conclusions and recommendations (each point is an extract).

2. Retain, to the extent possible, the original language from the source documents.

3. Include examples provided by users that illustrate points whenever possible.

4. Indicate the context from which each extract was obtained.

5. Indicate the source of each extract.

6. Organize the extracts into logical groupings and subgroupings.

7. Avoid staff analysis or explanation in the database. That analysis is the subject of a related but separate document titled "Analysis of the Information Needs of Investors and Creditors."

Sources of Information in the Database

The database includes material taken from certain direct documents. Direct documents are either authored by users, or based on research directly with users, about their needs for information. The Exhibit to this introduction indicates the direct documents that provided the information in this database.

Organization

This database is divided into categories and subcategories, which are listed in the index. We designed the organization to fit neatly into the work of the various Subcommittees of the Special Committee.

Format

The database includes three types of data: (i) extracts of direct documents, (ii) staff comments that help the reader place in context the related extract, and (iii) in rare cases, staff summaries of direct documents. The three types of data each appear differently in the database so that the reader can distinguish one from others.

Extracts are single spaced and slightly indented. Each paragraph of the extract is followed by a source reference, in bold type, indicating the document and page or paragraph number. Some extracts are included in more than one subcategory. If so, each paragraph of the extract is followed by a cross reference indicating the other subcategories where that paragraph is found.

Staff comments that help the reader place the extract in context are double spaced and not indented. The comments are preceded by [Context], in bold type. Staff comments generally precede the related extract.

Staff summaries are double spaced and not indented. The summary is preceded by [Summary of (give document and page reference here)], in bold type. Staff comments generally precede the related extract.

The Users' Needs Subcommittee

EXHIBIT

DIRECT DOCUMENTS

INCLUDED IN THE DATABASE

Direct Document

Code

1. SRI International, Investor Information Needs and the Annual Report, Financial Executives Research Foundation, 1987

SRI

2. The unpublished paper prepared by the Accounting Policy Committee of Robert Morris Associates, Summary of Important Positions Related to Accounting Principles and Auditing Standards, June 1990

RMA90

3. Letter from the Accounting Policies Committee of the Robert Morris Associates to Larry Grinstead dated September 16, 1992

RMA92

4. The Subcommittee's summary of transcripts taken from interviews with users and regulators performed by the FASB Oversight Committee of the Financial Accounting Foundation

FASOversight

5. Report of Association for Investment Management and Research Corporate Information Committee Including Evaluation of Corporate Financial Reporting in Selected Industries for the years 1989-90, AIMR, 1990

AIMR/CIC90

6. Reports of Association for Investment Management and Research Corporate Information Committee Including Evaluation of Corporate Financial Reporting in Selected Industries for the years 1990-91, AIMR, 1991

AIMR/CIC91

7. Report of Association for Investment Management and Research Corporate Information Committee Including Evaluation of Corporate Financial Reporting in Selected Industries for the year 1991-92, AIMR, 1992

AIMR/CIC92

8. The unpublished paper prepared by the Association for Investment Management and Research, dated April 3, 1991, Comments of Association for Investment Management and Research on Matters Addressed in Interview Guide of Oversight Committee, Financial Accounting Foundation

AIMR/FAF91

9. AIMR, The Financial Services Industry - Banks, Thrifts, insurance Companies, and Securities Firms, September 1992

AIMR FIN SER INDUSTRY

10. AIMR Position Paper, Financial Reporting in the 1990's and Beyond, AIMR, July, 1992

AIMR/FAPC

92

11. Lynch, Peter, One Up on Wall Street - How to Use What You Already Know to Make Money on Wall Street, Simon and Schuster, 1989

LYNCH

12. A study prepared for the Association of Reserve City Bankers by KPMG Peat Marwick, Estimating Fair Values for Financial Instruments - Disclosures and Beyond, Undated

KPMG BANK STUDY

13. Summary of the Subcommittee's discussions with several sell- side equity analysts from Bear Stearns

BEAR STEARNS

14. Summary of the Subcommittee's discussions with several sell- side equity analysts from Goldman Sachs

GOLDMAN

15. Summary of meeting with Jay H. Freedman, buy-side equity analyst, Lincoln Capital Management Company

FREEDMAN

16. Unpublished report to the Special Committee, A Content Analysis of Sell Side Financial Analyst Company Reports by Previts, Bricker, Young and Robinson, December, 1992

PREVITS

17. Hill and Knowlton, Inc., The Annual Report: A Question of Credibility - A Survey of Individual and Professional Investors, October, 1984

HILL KNOWLTON

18. Towers Perrin, FAS 106 and the Equity Markets: "Big Bang" - or Nonevent, October, 1992

TOWERS PERRIN

19. S & P's Corporate Finance Criteria, Standard and Poor's Corporation, Spring, 1992

S& P

20. Unpublished paper by Betriou, Ewenczyk, Meriaux, and Muller, Financial Analysts' Requirements in the Field of Accounting Data

BETRIOU

21. Letter from Jack Ciesielski, financial analyst, to Denny Beresford about user input in the standard setting process

R. G. Associates

22. Survey titled, A Study of the Attitudes Toward and an Assessment of the Financial Accounting Standards Board, conducted by Louis Harris and Associates, Inc., 1985

Harris

23. Materials resulting from the Subcommittee's Investor and Creditor Discussion Groups:

a. Transcripts of the October 16, 1992 meeting of the Investor Discussion Group

TI 10/16

b. Postmeeting questionnaire October 16, 1992

PMQI 10/16

c. Transcript of the December 9, 1992 meeting of the Investor Discussion Group

TI 12/9

d. Postmeeting questionnaire December 9, 1992 and January 13, 1993

PMQI 12/9 and 1/13

e. Transcript of the January 13, 1993 meeting of the Investor Discussion Group

TI 1/13

f. Transcripts of the March 17, 1993 meeting of the Investor Discussion Group

TI 3/17

g. Postmeeting questionnaire March 17, 1993

PMQI 3/17

h. Transcripts of the December 8, 1992 meeting of the Creditor Discussion Group

TC 12/8

i. Postmeeting questionnaire December 8, 1992

PMQC 12/8

j. Transcript of the February 2, 1993 meeting of the Creditor Discussion Group

TC 2/2

k. Postmeeting questionnaire February 2, 1992

PMQC 2/2

l. Transcript of the March 11, 1993 meeting of the Creditor Discussion Group

TC 3/11

m. Postmeeting questionnaire March 11, 1993

PMQC 3/11

n. Transcript of the April 7, 1993 meeting of the Market Value Discussion Group

TMKT 4/07