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Explanation of Variances Name of smaller authority: SwinfordParish CouncilCounty area (local councils and parish meetings only: LeicestershirePlease provide full explanations, including numerical

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How to fill out explanation of variances

01

Identify the actual results or data points that differ from the expected or budgeted amounts.

02

Analyze the reasons behind the variances by comparing the actual data with the budgeted data.

03

Break down the variances into categories such as price variance, quantity variance, and mix variance.

04

Prepare a detailed explanation for each category of variance, including any factors that contributed to the differences.

05

Communicate the explanations clearly to stakeholders or decision-makers to ensure transparency and understanding.

Who needs explanation of variances?

01

Business managers and executives who are responsible for budgeting and financial performance.

02

Financial analysts who need to interpret and communicate variances to internal or external stakeholders.

03

Investors or shareholders who want to understand why actual results deviated from the expected outcomes.

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What is explanation of variances?

Explanation of variances is a report that provides details on the reasons for the differences between budgeted and actual amounts.

Who is required to file explanation of variances?

Organizations or individuals who are responsible for budgeting and financial reporting are required to file explanation of variances.

How to fill out explanation of variances?

Explanation of variances can be filled out by providing specific reasons for the differences in budgeted and actual amounts, along with supporting documentation.

What is the purpose of explanation of variances?

The purpose of explanation of variances is to provide transparency and accountability in financial reporting, and to help identify any discrepancies that may need to be addressed.

What information must be reported on explanation of variances?

Information such as specific line items that vary from the budget, reasons for the variances, any corrective actions taken, and supporting documentation must be reported on explanation of variances.

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