Worldscope Database Datatype Definitions Guide

Issue 6
Introduction to Worldscope
Worldscope does not attempt to standardize data for all valuation differences
between companies. We do not believe this is a feasible or desirable aim, given the
lack of detailed published information and the sheer size and diversity of the
database.
Where differences arise due to disclosure or presentation, however, it is possible to
greatly improve the value of fundamental information to practitioners. In its simplest
manifestation, this could mean that the reported 'Sales' of a tobacco company which
include excise taxes should not be compared directly with the reported 'Sales' of
another tobacco company which exclude excise taxes. There are numerous examples
of such simple presentation issues which can cloud the usefulness of 'raw data', and
of course this multiplies when different countries, industries, accounting systems, and
different languages are involved.
Worldscope analysts use standard data definitions in the coding of financial accounts.
By closely examining the nature and components of financial statements, footnotes
and related disclosures, differences in accounting terminology, presentation, and
language are minimized. These definitions form the last section of this book. Any
variations from our standard definitions are footnoted where it is not possible to
aggregate or disaggregate data accurately. Format variations are overcome by use of
the standard industry templates contained in section four of this book.
Worldscope data analysts carefully examine the terminology used in reported
financial information. Words like 'short-term', 'long-term', 'current', 'operating’,
’special’, and 'extraordinary' can be variously defined from company to company, and
in different industries and accounting systems. Because each Worldscope data item
is precisely defined in a standard way, any reported items which deviate from this
definition are standardized to increase comparability. In the case noted above, for
example, the 'Sales' figures contained on Worldscope can be compared, because our
Field 01001 Net Sales or Revenues is always net of excise taxes, which is contained
in a separate supplementary field (Field 18063).
To illustrate with another example, general business practice regards twelve months
as an appropriate dividing line between 'current' and 'non-current'. Yet many
companies include long-term portions in their 'current' investments, receivables, and
so on. This is only apparent when one sifts through the notes to the accounts, as our
analysts are required to do. Any such non-current amounts are reclassified to longterm
receivables, long-term investments, etc. Thus the utility and comparability of
working capital and other ratios is enhanced. Similarly, when companies report 'long
term debt' including the current portion (amounts maturing within one year), we back
out this amount and include it in the item Short Term Debt & Current Portion of Long
Term Debt (Field 03051).
Another example is fixed assets impairment charges. It can be treated by companies
as a non recurring item. Yet other companies may consider it as an operating
expense and include it within cost of goods sold. This is only apparent when one sifts
through the notes as our analysts are required to do. Worldscope treats fixed assets
impairments as non recurring and an adjustment is made to cost of sold and
operating profit when it includes this item. Thus the utility and comparability of
operating profit and ratios such as operating margin is enhanced. A separate field
exists for impairment allowing the customer to add the data back into operating profit
if he would prefer to treat impairment as non recurring.
As a final illustration of Worldscope's methodology, minority interests may be
separated from shareholders' equity or included and may or may not be deducted in
arriving at net income. Our analysts reformat the accounts to standardize this for all
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