Underlying: Difference between revisions

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imported>Doug Williamson
(Layout.)
imported>Doug Williamson
(Add comparable definition. Source: FT Lexicon http://lexicon.ft.com/Term?term=underlying-basis)
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1.
1.
A measure which is comparable 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 a way that reflect well on its own performance.
Inflation is sometimes quoted on an 'underlying' or 'core' basis - excluding certain items considered non-typical - as well as the on the usual 'headline' basis.
2.


Underlying asset.
Underlying asset.




2.
3.


Underlying price.
Underlying price.




3.
4.


A risk exposure being hedged, often by the use of a derivative instrument.
A risk exposure being hedged, often by the use of a derivative instrument.
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== See also ==
== See also ==
* [[Derivative instrument]]
* [[Derivative instrument]]
* [[Inflation]]
* [[Like for like]]
* [[Profit]]
* [[Revenue]]
* [[Underlying asset]]
* [[Underlying asset]]
* [[Underlying currency]]
* [[Underlying currency]]
* [[Underlying price]]
* [[Underlying price]]

Revision as of 05:40, 22 August 2017

1.

A measure which is comparable 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 a way that reflect well on its own performance.

Inflation is sometimes quoted on an 'underlying' or 'core' basis - excluding certain items considered non-typical - as well as the on the usual 'headline' basis.


2.

Underlying asset.


3.

Underlying price.


4.

A risk exposure being hedged, often by the use of a derivative instrument.


See also