B/(W): Difference between revisions

Latest revision as of 13:37, 22 August 2019

Variance analysis - sign conventions.

Better/(Worse).

A label and sign convention in financial reporting.

It is designed to aid the interpretation of differences or changes, by specifying a consistent convention.

Under the B/(W) convention, good news is denoted by a POSITIVE number.

Good news is also known as a 'favourable variance'.

For example, a cost saving or an income improvement.

A common example is a better actual result, compared with an earlier forecast.

Under the B/(W) convention NEGATIVE numbers are bad news, 'worse'.

Bad news is also known as an 'adverse' variance.

Sometimes the opposite convention is used.

This is the (B)/W convention.

Under the (B)/W convention - positive numbers are worse, i.e. adverse.

Under the (B)/W convention NEGATIVE (bracketed) numbers are better and favourable.

@@ Line 1: / Line 1: @@
-Better / (Worse).
+''Variance analysis - sign conventions''.
-A label in financial reporting to indicate whether positive differences are good news - also known as 'favourable', or more simply better.
+Better/(Worse).
-When the label is B/(W) the positive numbers are better than budget or prior period.
+A label and sign convention in financial reporting.
-When the label is (B)/W the opposite applies - negative numbers would be better and favourable.
+It is designed to aid the interpretation of differences or changes, by specifying a consistent convention.
+Under the B/(W) convention, good news is denoted by a POSITIVE number.
+Good news is also known as a 'favourable variance'.
+For example, a cost saving or an income improvement.
+A common example is a better actual result, compared with an earlier forecast.
+Under the B/(W) convention NEGATIVE numbers are bad news, 'worse'.
+Bad news is also known as an 'adverse' variance.
+=====(B)/W convention=====
+Sometimes the opposite convention is used.
+This is the (B)/W convention.
+Under the (B)/W convention - positive numbers are worse, i.e. adverse.
+Under the (B)/W convention NEGATIVE (bracketed) numbers are better and favourable.
 == See also ==
+*[[Adverse]]
+*[[Favourable]]
+*[[Inflow/(outflow)]]
+*[[Mostly positive]]
+*[[Sign convention]]
 *[[Variance]]
-*[[Adverse]]
+*[[Variance analysis]]
+*[[YTD]]
+[[Category:Risk_reporting]]