(B)/W

From ACT Wiki
Revision as of 16:16, 10 December 2017 by imported>Doug Williamson (Update links.)
Jump to navigationJump to search

Variance analysis.

(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 NEGATIVE (bracketed) 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 POSITIVE 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 - negative numbers are worse (adverse).

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


See also