14: Performance Measurement

Discontinued operations

The disposal or availability for sale of a major line of business or geographic area of operations within an entity.

Horizontal analysis

Evaluating financial data over time to determine the increase or decrease, expressed as an amount or percentage.

Horizontal percentage change for the period

Percentage measuring the change from one period to the next, calculated by dividing the dollar amount of change by the prior-year amount.

Horizontal percentage of a base-period amount

Percentage measuring change since a base year, calculated by dividing the amount for the specific period by the base-year amount.

Non-GAAP measures

Financial performance measures defined by management.

Vertical analysis

Evaluating financial data by expressing each item as a percentage of a base amount, typically sales in the income statement or total assets in the financial position statement.

Vertical percentage of a base amount

Percentage measuring the proportion of an amount in a financial statement by dividing the financial statement amount by the base amount for that specific financial statement.