FIN.1:10 - Architectural Rationale

Financial Methods can agree internally while answering different questions. Liquidity concerns available money at a date; valuation concerns a specified stream or interest; allocation concerns the alternatives that can be chosen together. Framing makes their results composable by preserving the party, baseline and conditions each one used. The work is useful before calculation because an incorrect subject or counterfactual can survive every arithmetic check.

Several horizons and perspectives are sometimes necessary, but multiplying them without a receiving use adds reconstruction work. Retain a distinction when it changes the available action, the measured consequence or the warranted claim. Detailed recovery of an obligation stays in FDM, operating feasibility stays with its practice, and a contested objective stays with the responsible decision. Finance makes their consequences explicit instead of silently deciding those matters inside a model.

The short route remains valuable when a recurring decision has stable grounds. Reuse that frame until a relevant change occurs; a new spreadsheet or reporting period alone need not recreate it. Conversely, a different claimant, financing policy or payment date can reopen the frame even when the model’s cells and title have not changed.