Document assumptions people can review
A practical reference for finance contributors and distributed budget holders.
Fictional example: the worked figures below come from Alder & Finch Services, an invented company, and are illustrative only. They are not forecasts or facts about your organization.
For each planning input, state what is expected to change, the unit and period, the value used, the evidence behind it, how uncertainty is treated across scenarios, any dependency, and the role accountable for the assumption. Label estimates as estimates and make the source and its date easy to trace.
This page supports input quality; it does not provide a financial model, determine company policy, or record approvals.
Drivers: record the input and its context
Use the fields below to make each assumption understandable without implying that sample values are company data.
| Capture | What to record | Fictional worked example |
|---|---|---|
| Driver | Name the operational factor and the quantity being forecast. | Inbound service requests |
| Unit and period | State the measure, interval, and population or scope. | Requests per quarter; Alder & Finch's Central Support team |
| Base value | Give the value used and identify whether it is observed, estimated, or judgment-based. | 1,200 requests in Q2; illustrative planning baseline |
| Evidence | Name the source and the period it covers; distinguish observed history from an estimate. | Illustrative internal count: 1,140 requests in Q1; used here as context, not a verified source |
| Scenario treatment | Show how the assumption changes by scenario and explain the reason for each change. | Base: 1,200; lower: 1,100; higher: 1,320 requests in Q2; sensitivity values are judgment-based |
| Dependency | Name a condition that could change the driver and the role that can clarify it. | A planned self-service launch may affect request volume; service operations owner to confirm timing |
| Accountable role | Name the role responsible for explaining or correcting the assumption. | Central Support planning lead |
Evidence: separate what is known from what is assumed
A reviewer should be able to follow the reasoning and see where judgment begins.
For a sourced baseline, identify the source, the period covered, and the measure taken from it. In the fictional example, the Q1 count of 1,140 requests is presented as an illustrative historical observation, while the Q2 base of 1,200 is a planning assumption. The example does not establish that either number is true for another organization.
For a sensitivity with no direct evidence, say so plainly and explain the reasoning. Here, the lower value of 1,100 and higher value of 1,320 are judgment-based examples, not measured outcomes. A reviewer can then challenge the range without mistaking it for source data.
If evidence is unavailable, name the gap, state what estimate is being used and why, and identify the role that can provide or correct the input. Do not describe an estimate as historical fact.
Scenarios, dependencies, and ownership
Common questions when preparing an assumption for review.
What if I have no reliable evidence yet?
Identify the missing source or coverage period. If a planning estimate is still needed, label it as judgment-based, explain the basis, and name the role that can resolve the evidence gap. Do not present the estimate as observed data.
How should I distinguish scenarios?
Keep the driver, unit, and period consistent, then show the value used in each scenario and why it differs. Label values as sourced, estimated, or judgment-based. Use the scenario names and conventions agreed for your planning cycle.
What counts as a dependency?
A dependency is a condition that could materially change the assumption, such as the timing of a planned service change. State the condition and the role that can clarify it; avoid presenting an unconfirmed event as settled.
Who owns an assumption?
Name the role accountable for explaining and correcting the input, typically the operational owner closest to the driver. Central finance can coordinate review, but the source and accountable role should remain visible.
Does this page approve my forecast or prescribe company policy?
No. It is a reference for making inputs transparent and reviewable. Follow the planning cycle's approved model, scenario conventions, and review process for decisions or submissions.