Best practices for financial spreading

Best practices for financial spreading

Spreading methods vary from institution to institution. Although each method is unique, some elements of the spreading process are common.

  • General items: To create an accurate spread, some general points need to be checked and the spread adjusted, as necessary. The following are some of these general points:
  • The currency in which the financials have been provided; when dealing with foreign currencies, use the exchange rate
  • Are the figures provided actuals? Are they in thousands or millions?
  • Are the financial statements standalone or consolidated?
  • Auditor’s report and type of statements provided — are they audited, reviewed, complied, company-prepared, tax returns or projections?
  • Are there financial reclassifications or restatements in the available comparable statements? A restatement could be due to an inaccuracy in a previous statement, relating to an acquisition, divestiture or other corporate action that alters the final reporting.

How Acuity Knowledge Partners can help

We support global and regional commercial banks and investment banks with the consistent treatment of line items based on industry best practices and agreed-on methodology documents. Our automated BEAT Aura extraction and spreading tool is an AI-based spreading solution that helps research analysts (MBAs, chartered accountants and CFAs) automatically retrieve information from company filings and populate relevant data points in client-approved MS Excel models and templates. Following the automated spreading process, our highly experienced domain experts ensure the accuracy of the output

Key benefits of our services include the following:

  • 24-hour turnaround for rush spreads
  • 40–50% reduction in costs
  • 99% accuracy
  • Flexible staffing.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Acuity Knowledge Partners

Acuity Knowledge Partners


We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points.