Underlying: Difference between revisions
imported>Doug Williamson (Add link.) |
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1. ''Non-GAAP performance measures.'' | 1. ''Non-GAAP performance measures.'' | ||
A measure which | A measure which claims to improve comparability between different periods or organisations, after removing distorting effects from one-off items, or other distorting items such as exchange rate changes. | ||
Underlying revenue and profitability are common examples. | Underlying revenue and profitability are common examples. | ||
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[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Corporate_finance]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 22:52, 1 November 2024
1. Non-GAAP performance measures.
A measure which claims to improve comparability between different periods or organisations, after removing distorting effects from one-off items, or other distorting items such as exchange rate changes.
Underlying revenue and profitability are common examples.
Underlying measures should however be treated with caution, as management may - consciously or unconsciously - be influenced to present figures in ways that reflect well on its own performance.
2.
Inflation is sometimes quoted as 'underlying inflation' in addition to the usual 'headline' basis of inflation.
'Underlying' or 'core' inflation excludes certain items considered non-typical.
This is designed to help to identify and understand trends and other comparisons.
3.
Underlying asset.
4.
Underlying price.
5.
A risk exposure being hedged, often by the use of a derivative instrument.
