Underlying: Difference between revisions
imported>Doug Williamson (Update last sentence of first definition to broaden scope.) |
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1. | 1. ''Non-GAAP performance measures.'' | ||
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. | 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. | ||
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== See also == | == See also == | ||
* [[Below the line]] | |||
* [[Continuing operations]] | |||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Exceptional item]] | |||
* [[Headline]] | |||
* [[Inflation]] | * [[Inflation]] | ||
* [[Like for like]] | * [[Like for like]] | ||
* [[Non-GAAP measures]] | |||
* [[Profit]] | * [[Profit]] | ||
* [[Profitability]] | |||
* [[Revenue]] | * [[Revenue]] | ||
* [[Statement of profit or loss]] | |||
* [[Underlying asset]] | * [[Underlying asset]] | ||
* [[Underlying currency]] | * [[Underlying currency]] | ||
* [[Underlying price]] | * [[Underlying price]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
Latest revision as of 20:19, 19 February 2023
1. Non-GAAP performance measures.
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 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.
