CD-ROM: information at your fingertips.

CD-ROM: INFORMATION AT YOUR FINGERTIPS

Carol Brown, CPA, PhD, and Mary Ellen Phillips, CPA, both assistant professors of accounting at Oregon State University, Corvallis, review currently available CD-ROM databases of interest to accountants.

The new era of information storage and retrieval is here. Now you can have more than 150 reference books and software applications on a single compact disc while at a client's office or your company's branch location. A recent Wall Street Journal article reported that both Arthur Andersen and Price Waterhouse are supplying their auditors with CDs for tax, auditing and accounting rules. The American Institute of CPAs plans to publish its National Automated Accounting Research System (NAARS) library on a CD. Prentice Hall has several services on CD and the next logical step is to publish its tax service on a disc. Matthew Bender & Company and West Publishing Company already have their tax services on CD.

STORAGE POWER OF A MAINFRAME

CD-ROMs (compact disc-read only memory) are now being used to store large volumes of material. The discs are the same as those used for stereo systems but the data are formatted to be read by a personal computer. Discs with ROM can only be read but not altered, added to or edited. In order to use a CD-ROM with a personal computer, the user needs a CD-ROM drive (player). Prices for CD-ROM players range from $600 to $1,000 depending on brand, supplier and configuration.

A single CD-ROM holds 550 megabytes of information, the equivalent of 270,000 pages of text, which is more than the entire Encyclopedia Britannica, or 450 high-density floppy discs. The CD-ROM has brought the storage power of a mainframe computer to the personal computer. In addition, hard discs are now available for personal computers that hold 300 megabytes of information. Thus, the power of mainframes can now be acquired either through hard discs or CD-ROMs.

HOW ACCESSED

The database is indexed for easy access to the desired information from a variety of viewpoints. For example, the user could access the accounting, auditing and disclosure requirements for deferred income taxes, deferred income tax liability or Financial Accounting Standards Board Statement no. 96, Accounting for Income Taxes. In addition, the user can print out the desired references or import them into an existing document.

Currently, several companies are producing a variety of CD-ROM databases. The companies license their databases and provide updated discs semiannually, quarterly or even monthly. More than 1,000 CD-ROM titles have been released and more than 200,000 CD-ROM players are in use. Some accounting firms are developing CD-ROM databases for internal use only. A firm that develops its own databases internally has complete control over their contents. However, this control results in substantial costs for developing and maintaining the databases.

The databases an accountant might use can be grouped by the type of information indexed: specialized information such as income taxes, accounting and auditing standards; computer software and hardware; government publications; specific company information; and business periodicals and newspapers. The following review of the currently available, or forthcoming, CD-ROM databases is divided into these groups.

TAX, AUDITING AND ACCOUNTING

The following descriptions are of CD-ROMs that index tax, auditing and accounting rules and standards. Some of the CDs are for internal use by members of the firm that developed them and others are available for purchase.

* Audit Reference and Resource Discs (Arthur Andersen & Co., for internal use only). These databases contain the professional accounting literature. One disc includes all data for worldwide use; another disc contains country-specific information. The U.S. disc includes Accounting Principles Board and FASB pronouncements, minutes of the emerging issues task force, all AICPA publications, Arthur Andersen's Accounting Standards, SEC Practice, Auditor's Reports and Industry Competence Manuals. These discs also contain Arthur Andersen's international phone directory, voice mail directory and client list. The discs have been used since 1988.

* Bankruptcy Library (Matthew Bender & Company, to be released in 1990). This database will include Collier on Bankruptcy, 15th edition; Collier's Bankruptcy Cases, 2d edition; Collier's Bankruptcy Practice Guide; and others.

* Bankruptcy Library (West Publishing Company, $2,640 a year, including periodic updates). This database consists of three discs that include Bankruptcy Code, Rules & Forms; Bankruptcy Code Annotations; Bankruptcy Cases 1979-1983, 1984-1987, & 1988; West's Bankruptcy Digest; Cowans Bankruptcy Law and Practice; Bankruptcy Cases of Interest; and Bankruptcy Bibliography. The CD-ROM system is integrated with an online database for more current information.

* Bender's Federal Tax Service (Matthew Bender & Company, $1,250 a year for CD including monthly updates and $1,350 a year for CD and printed version including monthly updates). This database contains 18 volumes of information that include Internal Revenue Code, regulations and explanations. In addition to the federal tax service, an eight-state library can be included on the disc for an additional fee.

* Federal Taxation Library (West Publishing Company, $4,500 a year including periodic updates). This database contains Federal Tax Code and Regulations, 1988; Digest--Cases and Administrative Materials; Rules of the Tax Court and the Claims Court; 1986 Tax Reform Act and Analysis; 1986 Tax Reform Act Legislative History; Revenue Rulings, 1954-1988; Revenue Procedures, 1954-1988; Administrative Orders, 1954-1988; Actions on Decisions, 1975-1988; Letter Rulings, 1983-1988; Federal Tax Cases, 1982-1985; and Federal Tax Cases, 1986-1988. The CD-ROM database is integrated with an online database containing information that has become available subsequent to the CD's release.

* Prentice Hall Information Network--PHINet (Prentice Hall, $2,500 for one of the four discs or $7,500 for all four discs including semiannual updates) PHINet CD-ROMs have been available since 1986. The discs can be searched for occurrences of key words and are currently being used by the Internal Revenue Service. They are also integrated with Prentice Hall's online service to update information since the last issuance of the discs.

Disc 1: American Federal Tax Reports 1973 to present.

Disc 2: Tax Court Decisions Recorded and Memorandum 1973 to present.

Disc 3: Private Letter Rulings 1977 to present.

Disc 4: Revenue Rulings and Procedures 1954 to present.

* Price Waterhouse Researcher (Price Waterhouse, for internal use only). The database contains the professional accounting literature including APB and FASB pronouncements, EITF minutes, all AICPA publications, Price Waterhouse Accounting and Auditing Guidance, Price Waterhouse Accounting and Auditing Service and internal and external accounting and auditing information for the United Kingdom, Canada and Australia, with Europe soon to be added.

* Tax Management Portfolios (Tax Management, Inc., The Bureau of National Affairs, Inc. and West Publishing Company, $3,360 a year including periodic updates). This database contains over 280 individual portfolios in the Active Portfolios in the U.S. Income Series, Active Portfolios in the Estates, Gifts and Trusts Series and Active Portfolios in the Foreign Income Series. Tax Management Portfolios is a companion database to the Federal Tax Library, which is published by West Publishing Company.

COMPUTER SOFTWARE AND HARDWARE

Accountants are interested in information about the available computer software and hardware both personally and professionally, especially for advising clients. The following lists descriptions of the CD-ROMs currently available that have information on software and hardware products. In addition, periodical indexes in libraries can be used to find software and hardware reviews about computer-related products.

* Computer Database (Information Access Co., $3,000 a year including monthly updates). This database focuses on computer journals and is designed for public access libraries. Each disc includes abstracts of 120,000 articles from more than 130 publications for the prior 30 months.

* Computer Library (Ziff Communications, $695 a year including monthly updates). This database focuses on computer journals and is designed for individual or local area network use with full text search capabilities. Each disc covers more than 60,000 articles from over 130 publications from the prior 12 months. The database includes abstracts of all the articles, full text of articles from 25 computer magazines, PC Magazine utility programs in binary form, PC Week's Buyer's Guide, a 3,500-term computer glossary and key industry newsletter.

* Computer-SPECS (Silver-Platter Information Inc., $1,250 a year including semiannual updates or $795 for a single disc). This database contains over 12,000 listings of computer products from more than 1,500 companies. Each entry provides detailed characteristics, prices and descriptions of computers, as well as computer-related products.

* ICP Software Information Data Base (Bureau of Electronic Publishing, Inc., $975 a year including semiannual updates). The database covers more than 15,000 software programs including price, availability, specifications, hardware platforms, compatibility and operating systems.

* SOFTWARE-CD (Silver-Platter Information Inc., $1,250 a year including semiannual updates). The database contains more than 10,000 listings of software products for business. Each has a 250-word description of the features and functions of the software package including hardware, operating system, programming languages, prices, potential users, date first available, number of installations, related packages, other manufacturer services, documentation and support available.

GOVERNMENT DOCUMENTS

Several CD-ROM databases index government documents. The following lists these databases, some of which are available at local libraries. Publishers may provide information on which libraries have their CD-ROMs.

* Business Indicators (Bureau of Electronic Publishing, Inc., $2,200 a year including monthly updates). This database includes National Income and Product (GNP) Accounts, Personal Income and Expenditures, Business Statistics published by the U.S. Department of Commerce and Income and Employment by State.

* Consu/Stats 1 (Bureau of Electronic Publishing, Inc., $99 per disc). This database contains unabridged information from U.S. government economic databases for consumer expenditures for the 1984-88 period.

* County Statistics (Bureau of Electronic Publishing, Inc., $1,200 per disc). This database includes items such as population, housing, health, education, business and agriculture for each county, state and metropolitan area. Population centers under 25,000 are also included but with limited data. The disc also includes the Census Bureau's CO-Stat 2.

* Econ/Stats (Bureau of Electronic Publishing, Inc., $99 per disc). This database includes the unabridged information from a variety of U.S. government economic databases including the Consumer Price Index, Producers Price Index, Industrial Production Index, Export/Import Price Index, Selected Interest Rates, Capacity Utilization, Money Stock, as well as Employment Hours and Earnings.

* Indexes for bibliographic citations to federal government publications: GPO Monthly Catalog (SilverPlatter Information Inc., $600 a year including bimonthly updates), Government Documents Catalog Service (Auto-Graphics, Inc., $1,100 a year including monthly updates or $660 a year including bimonthly updates), Government Printing Office Monthly Catalog/Index to U.S. Government Periodicals (H. W. Wilson Co., $795 a year including annual disc updates and continuous online updates) and Government Publications (Information Access Co., $1,500 a year including monthly updates). These correspond to the Monthly Catalog of United States Government Publications and provide access to reports, studies, fact sheets, handbooks, bills, hearings, presidential statements, treaties, conference proceedings and other government publications. The topics covered include finance, business, law, demographics, agriculture, medicine and public health. The documents indexed are from 1976 to the present. In addition, the disc from H. W. Wilson Co. provides article citations for over 185 periodicals produced by more than 100 government agencies from 1980 to date. Subjects include accounting, banking, law, business, commerce and industry.

* Microsoft Small Business Consultant (Bureau of Electronic Publishing, Inc., $120 per disc, Microsoft Corporation, $149 per disc). A database of more than 220 government publications from the Small Business Administration, Department of Commerce, Veterans Administration, Defense Department and General Services Administration. The database also includes publications of interest to small businesses from the CPA firm Deloitte & Touche.

* Microsoft Stat Pack (Bureau of Electronic Publishing, Inc., $145 per disc; Microsoft Corporation, $125 per disc). A compilation of official U.S. government statistics on the economy, manufacturing, industry, trade, business, agriculture, demographics and politics. The database includes Statistical Abstracts of the United States, U.S. Business Statistics and Agricultural Statistics.

INFORMATION ABOUT COMPANIES

The following is a list of the CD-ROMs that provide specific company information. If a user does not want to invest in the CDs, some of these databases may also be available from the various online service providers.

* CIRR (SilverPlatter Information Inc., $1,250 a year including quarterly updates). This database contains company and industry research reports issued since 1979 by 68 securities and institutional investment firms. The disc includes 75,000 reports that analyze more than 7,000 North American and 1,000 foreign companies.

* CorFile (SilverPlatter Information Inc., $1,495 a year, forthcoming in 1990). This is a database of public, private and not-for-profit enterprises that combines directory type information; annual reports; news releases; benefits, career and recruitment literature; company publications; and investment analysts' reports.

* Compact Disclosure (Disclosure Inc., $5,000 a year including quarterly updates). The database includes information on 12,000 public companies and stockholder information on 5,500 companies. The information is from 10-K and 10-Q documents, annual reports and proxy statements. Libraries and investment firms are the primary customers.

* Moody's 5000 Plus (Moody's Investors Service, $5,000 a year including quarterly updates). The database provides complete information on all New York Stock Exchange, American Stock Exchange and over-the-counter national market system companies as well as year-to-date Moody's News Reports.

* One Source: CD/Banking (Lotus Development Corp., commercial banks $10,000 a year, savings and loans $10,000 a year, bank holding companies $10,000 a year, and mutual savings banks $5,000 a year including quarterly updates; prices are reduced for multiple copies and multiple databases). Data, compiled from the Sheshenoff information services database, cover 14,000 commercial banks, 6,000 bank holding companies and 3,000 savings and loans.

* One Source: CD/Corporate (Lotus Development Corp., $20,000 a year including monthly updates). Data cover 12,000 public companies, all standard industry classification codes, 50 industries and 80,000 officers and directors collected from seven major databases (Disclosure, Technical Data International, Predicast, UMI/Data Courier, Media General, Macmillan and Market Guide).

* One Source: CD/International (Lotus Development Corp., $15,000 a year including quarterly updates). Fundamental data are provided on 4,500 international industrial corporations, banks, insurance companies and financial services firms. The database also includes Worldscope and Moody's Report.

* One Source: CD/Investment (Lotus Development Corp., $20,000 a year including weekly disc updates and online daily updates). This provides comprehensive financial information on companies, stocks and other financial issues from seven industry-standard databases (Compustat, Daily Stock Price History, I/B/E/S, Media General, Value Line, Ford Investor Services and Bonds).

* One Source: CD/Private (Lotus Development Corp., $7,000 a year including quarterly updates). The database includes summary information on more than 110,000 private companies, subsidiaries and divisions including the location, phone number, name of the chief executive officer, year formed, parent, company hierarchy, industries and SIC codes. The emphasis is on hard-to-find data on private companies. Information is compiled from Ward's Business Directory, Directory of Leading Private Companies and Disclosure II.

* Standard & Poor's Corporations (Dialog Information Services, Inc., $4,250 a year including bimonthly updates). The database combines information from three other databases: Standard & Poor's Corporate Descriptions, Standard & Poor's Register (both biographical and corporate), as well as Standard & Poor's Compustat Services.

PERIODICAL AND NEWSPAPER INDEXES

Libraries are subscribing to CD-ROM indexes for journals, magazines, newspapers and books. Most medium-sized to large libraries now have CD-ROMs for general indexes of periodicals and many have indexes for business periodicals. CD-ROM facilities are available at libraries and can be used to search for articles (for example, software reviews) on topics of interest. The indexes of business periodicals that are currently available include ABI/INFORM (University Microfilms International), Business Index (Information Access Co.), Business Periodicals Index (H. W. Wilson Co.) and Business Periodicals on Disc (University Microfilms International). The following indexes include both general interest periodicals and newspaper articles: General Periodicals Index (Information Access Co.) and Magazine Index Plus (Information Access Co.). The following indexes contain abstracts and/or full articles from leading newspapers: Newspaper Abstracts on Disc (University Microfilms International) and National Newspaper Index (Information Access Co.).

TRAVELING LIBRARIES

The publishing world is in a major transition with massive amounts of information, previously in printed form, now being stored on CD-ROM for use with personal computers. Many of the references that we use are now, or soon will be, available on CD-ROM. As a result, professional libraries will require less space and can be carried from place to place, making them readily available to accountants at all locations.