Budgets, forecasts & scenarios · Core

Assumption

Also called: modelling assumption, planning assumption

ELI5

A condition treated as true for modelling despite uncertainty.

Used in conversation

“Finance will reconcile assumption before the board pack goes out.”

Pitch context

You will see “Assumption” in financial models, budgets, board packs and investor materials when the discussion reaches budgets, forecasts & scenarios.

Why it matters: In budgets, forecasts & scenarios, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

Model assumptionThe search label “Assumption” can route to both entries.

Sources & evidence · 7

Direct term-level sources and supporting source families.

U.S. Small Business Administration — Write your business planDirect source · primary · checked 2026-08-16
IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
Y Combinator — YC Startup Library — fundraising and pitching resourcesSupporting source family · practitioner · checked 2026-08-16
U.S. Securities and Exchange Commission — Small Business Capital Formation GlossarySupporting source family · primary · checked 2026-08-16
Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16
U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16