Variance analysis - sign conventions.
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.
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.