Investment appraisal

1.

Accounting.

A quantified explanation of the differences between two related amounts.

For example, an accounting reconciliation of reported operating profit to net operating cash flows.

This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period.

Each item contributing to the net difference being quantified within the reconciliation statement.

Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.

Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.

2.

A quantified explanation of the change in any balance, over a time period.

Sometimes abbreviated to 'rec'.

See also

• Bank reconciliation
• Full reconciliation
• Tax reconciliation