Base year - Revision history

Designing Buildings at 08:39, 1 December 2020

2020-12-01T08:39:46Z

← Older revision		Revision as of 08:39, 1 December 2020
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	* Yield.		* Yield.

−	[[Category:~~Standards_/_measurements~~]] [[Category:~~DCN_Standard~~]] [[Category:Cost_/_business_planning]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Standards_/_measurements]] [[Category:Cost_/_business_planning]]

Designing Buildings at 08:03, 14 December 2016

2016-12-14T08:03:15Z

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−	The term 'base year' refers to the year that is the starting point for a series of years in an economic or financial index. It can be used for comparing business activities, economic growth, measuring inflation and so on across a number of years~~. For a more precise index, a base month can be set instead~~.	+	The term 'base year' refers to the year that is the starting point for a series of years in an economic or financial index. It can be used for comparing business activities, economic growth, measuring inflation and so on across a number of years.

	It is usual for the base year to be set to an arbitrary level of 100. For example, if the base year is set as 2014:		It is usual for the base year to be set to an arbitrary level of 100. For example, if the base year is set as 2014:
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	This might be used for example to measure company performance over a period of time. Contractors can also use a base year to demonstrate percentage change in work won over a set period.		This might be used for example to measure company performance over a period of time. Contractors can also use a base year to demonstrate percentage change in work won over a set period.
		+
		+	For a more precise index, a 'base month' can be set instead.

	Within construction contracts, the 'base date' is a reference date from which changes in conditions can be assessed. It sets the reference date from which the conditions under which the tender was prepared are considered to have been known by the contractor and so are properly reflected in their price. If specified conditions change before the contract is implemented, then the contract may be adjusted to reflect this.		Within construction contracts, the 'base date' is a reference date from which changes in conditions can be assessed. It sets the reference date from which the conditions under which the tender was prepared are considered to have been known by the contractor and so are properly reflected in their price. If specified conditions change before the contract is implemented, then the contract may be adjusted to reflect this.
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	* Yield.		* Yield.

−	[[Category:Standards_/_measurements]] [[Category:Cost_/_business_planning]]	+	[[Category:Standards_/_measurements]] [[Category:DCN_Standard]] [[Category:Cost_/_business_planning]]

Designing Buildings at 08:02, 14 December 2016

2016-12-14T08:02:24Z

← Older revision		Revision as of 08:02, 14 December 2016
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−	The base year is the year that is ~~used as~~ the starting point for a series of years in an economic or financial index. It is used for comparing business activities, economic growth or measuring inflation. For a more precise index, a base month can be set instead.	+	The term 'base year' refers to the year that is the starting point for a series of years in an economic or financial index. It can be used for comparing business activities, economic growth, measuring inflation and so on across a number of years. For a more precise index, a base month can be set instead.

	It is usual for the base year to be set to an arbitrary level of 100. For example, if the base year is set as 2014:		It is usual for the base year to be set to an arbitrary level of 100. For example, if the base year is set as 2014:
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	* 2016: 107		* 2016: 107

−	This simple index series shows ~~an inflation~~ rate in the first year of 2.5%.	+	This simple index series shows a growth rate in the first year of 2.5%, and of 7% between the first year and the third year.

−	It is a key element of financial analysis to calculate how much a particular ~~number~~ changes from one time period to the next~~, and as such, many financial ratios are based on growth~~.	+	The base year is a key element of financial analysis used to calculate how much a particular measure changes from one time period to the next. The equation for calculating the growth rate is:
−		+
−	The equation for calculating the growth rate is ~~as follows~~:	+

	(Current year - Base year) / Base year		(Current year - Base year) / Base year
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	(107 - 100) / 100 = 7%		(107 - 100) / 100 = 7%

−	~~Calculated in this way, growth analysis is a way~~ to ~~demonstrate~~ company performance over a period of time. Contractors can also use a base year to demonstrate percentage change in work won over a set period.	+	This might be used for example to measure company performance over a period of time. Contractors can also use a base year to demonstrate percentage change in work won over a set period.
		+
		+	Within construction contracts, the 'base date' is a reference date from which changes in conditions can be assessed. It sets the reference date from which the conditions under which the tender was prepared are considered to have been known by the contractor and so are properly reflected in their price. If specified conditions change before the contract is implemented, then the contract may be adjusted to reflect this.
		+
		+	For more information see: Base date.

	= Find out more =		= Find out more =
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	* Accounting.		* Accounting.
		+	* Base date.
	* Business plan.		* Business plan.
	* Commercial management.		* Commercial management.

Editor: Created page with "The base year is the year that is used as the starting point for a series of years in an economic or financial index. It is used for comparing business activities, economic growt..."

2016-12-12T11:54:37Z

Created page with "The base year is the year that is used as the starting point for a series of years in an economic or financial index. It is used for comparing business activities, economic growt..."

New page

The base year is the year that is used as the starting point for a series of years in an economic or financial index. It is used for comparing business activities, economic growth or measuring inflation. For a more precise index, a base month can be set instead.

It is usual for the base year to be set to an arbitrary level of 100. For example, if the base year is set as 2014:

* 2014: 100
* 2015: 102.5
* 2016: 107

This simple index series shows an inflation rate in the first year of 2.5%.

It is a key element of financial analysis to calculate how much a particular number changes from one time period to the next, and as such, many financial ratios are based on growth.

The equation for calculating the growth rate is as follows:

(Current year - Base year) / Base year

Using the figures above:

(107 - 100) / 100 = 7%

Calculated in this way, growth analysis is a way to demonstrate company performance over a period of time. Contractors can also use a base year to demonstrate percentage change in work won over a set period.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Accounting.
* Business plan.
* Commercial management.
* Compound Annual Growth Rate (CAGR).
* Discounting.
* Gross value added (GVA).
* Internal rate of return.
* Net Present Value.
* Residual value.
* Yield.

[[Category:Standards_/_measurements]] [[Category:Cost_/_business_planning]]