ICAEW Financial Modelling Code report

ICAEW Financial Modelling Code report

As of yet, there is so universal set of agreed principles to navigate best practice - ICAEW’s Financial Modelling Code aims to change that

On Tuesday 13 November, ICAEW announced the launch of their Financial Modelling Code report – a guide designed to help drive decision-making throughout the business world. This has been inspired by the fact that there is still no universally accepted set of agreed principles for best practice.

According to their statement, “ICAEW’S Excel Community provides essential practical guidance on universal tenets of best practice in the field to minimise spreadsheet risk.”

The guide has aimed to capture the main guidelines for correct and cohesive financial modelling, involving spreadsheet creation to help build strong models and reduce the number of potential errors.

When compiling this report, ICAEW analysed seven organisations’ modelling standards, as well as taking on the input of over a dozen professional services organisations.

ICAEW’s technical manager, David Lyford-Smith, said: “There are various courses, standards, and guides available that explain how to build models, each with their own ideas about what the appearance, layout, and functionality of a model should be. Whilst there is much consensus among these methodologies, for both procurers and practitioners, there is no universally accepted set of agreed principles for how to carry out financial modelling. Most existing methodologies were developed with particular sectors or practices in mind; hence, they are frequently detail-oriented and not accepted very widely.

“Improper practice such as incoherent methods, or lack of review and oversight, negatively impacts the world economy. This guide was created to support best practice in creating financial models that are robust, understandable, and less likely to contain errors. Each section of the Code addresses a particular element of constructing a model presenting specific recommendations, including several options, representing generally suitable and wisely adopted approaches.”

Neil Rutledge, director at Amberside Advisors Ltd, concluded: “Amberside Advisors are proud to be involved with the development and publications of the ICAEW’s Financial Modelling Code.

“This achievement follows on from the recognition by ICAEW of Amberside’s own financial modelling standard earlier this year.”

To read the full report, click here.

Share

Resources & Whitepapers

The importance of UX in accounts payable: Often overlooked, always essential
AP

The importance of UX in accounts payable: Often overlooked, always essentia...

1y Kloo

The importance of UX in accounts payable: Often ov...

Embracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...

View article
The power of customisation in accounting systems
Accounting Software

The power of customisation in accounting systems

1y Kloo

The power of customisation in accounting systems

Organisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...

View article
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

4y Accountancy Age

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
8 Key metrics to measure to optimise accounts payable efficiency
AP

8 Key metrics to measure to optimise accounts payable efficiency

1y Kloo

8 Key metrics to measure to optimise accounts paya...

Discover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...

View article