Financial models & model mechanics · Core
Model assumption
Also called: assumption
ELI5
A chosen input representing an uncertain or future condition.
Used in conversation
“Can we expose the assumptions driving model assumption instead of hard-coding them?”
Pitch context
You will see “Model assumption” 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
- AssumptionThe search label “Assumption” 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