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Re: Conceptual understanding regarding Annual Displacement Factor

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Hi Amar,

 

It depends on the nomenclature requirement from business.

 

e.g. If a commpany is having April 2014 to March 2015 as the financial year & since majority of the months are coming in the calender year 2014. So in this case they may want to refer the entire April to March period as year 2014 & hence they will use -1 as displacement factor from January 2015 to March 2015 so that these last three months will come under year 2014. They will maintain posting period as below:

 

MonthDisplacement Factor
Apr0
May0
Jun0
Jul0
Aug0
Sep0
Oct0
Nov0
Dec0
Jan-1
Feb-1
Mar-1

 

 

Regards,

Vaibhav G



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