FIN.17:4.2 - Identify the change before replacing the number

Recover the source, effective time and meaning of the new information. A corrected invoice amount says the earlier description was wrong. A customer’s expected payment date changes a forecast. An agreed extension changes the contractual due date. A settled, usable bank receipt changes cash and may discharge a claim under its actual terms. These changes can refer to the same invoice while requiring different model operations. FDM supplies the position, term and event interpretation when it is unclear.

Compare the new information with the exact ground previously used. Check the entity, claim, currency, units, period and whether the value is gross, net, cumulative or a movement. A cumulative collection of 60 does not add another 60 to a model that already included the first 40. A percentage stated per year cannot replace a monthly input without the appropriate conversion. A revised reporting classification may leave cash unchanged while altering a ratio whose definition uses that classification.

Establish whether the source is adequate for the current use. A sales team’s revised expectation can be enough to run a liquidity scenario but cannot establish that a lender has changed its repayment date. A bank feed may establish a posting while leaving value date or availability unresolved. Obtain the specific missing interpretation where it changes action. Preserve usable parts of the account instead of waiting for every description to become equally certain.

Keep an earlier forecast available when it will be used to understand error or assess a method. The current operating view should use the supported new grounds, while the earlier decision remains interpretable on what was known then. This need can be met by an existing dated forecast or retained output; it does not require duplicating every workbook after every edit.