Wednesday, November 6, 2013

[CAClubIndia] Guidelines for Financial Modelling - Format (Part 1)

This article provides information about generally followed practises related to formatting while making financial models

Minimum number of Sheets in Financial Models
  • Assumption
  • Income Statement
  • Balance Sheet
  • Cash flow Statement
  • Schedules
  • Key Ratios
Formats and Input cells 
  • Centralized input sheet: All inputs to the model must be placed in single worksheet. If the same input is to be applied in formula in multiple location, then reference must be made to same input cell. 
For Instance: If tax rate is to be applied to earnings before tax in income statement and for deferred tax computation, then tax rate (as input) must be presented on ‘Assumption sheet’ and reference to all sheets must be linked to tax rate cell in assumption sheet.  

The article can be downloaded from