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== See also ==
== See also ==
*[[Adverse]]
*[[Adverse]]
*[[Favourable]]
*[[Inflow/(outflow)]]
*[[Inflow/(outflow)]]
*[[Mostly positive]]
*[[Mostly positive]]
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*[[Variance analysis]]
*[[Variance analysis]]
*[[YTD]]
*[[YTD]]
[[Category:Risk_reporting]]

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.


(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