Financial models & model mechanics · Working

Iteration

Also called: iterative calculation

ELI5

Repeated recalculation used to solve a circular or converging model.

Used in conversation

“Keep iteration on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Iteration” in financial models, budgets, board packs and investor materials when the discussion reaches financial models & model mechanics.

Why it matters: In financial models & model mechanics, 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

IterationThe same visible label “Iteration” names different concepts.
SprintThe search label “Iteration” can route to both entries.

Sources & evidence · 5

Direct term-level sources and supporting source families.

IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
U.S. Small Business Administration — Write your business planDirect source · 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