(B)/W: Difference between revisions
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== See also == | == See also == | ||
*[[Adverse]] | *[[Adverse]] | ||
*[[Inflow/(outflow)]] | *[[Inflow/(outflow)]] | ||
*[[Mostly positive]] | *[[Mostly positive]] | ||
*[[Variance]] | |||
*[[Variance analysis]] | *[[Variance analysis]] | ||
*[[YTD]] | |||
Revision as of 16:16, 10 December 2017
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.
