Common-base-year analysis(redirected from Common Base Year Analysis)
The representing of accounting information over multiple years as percentages of amounts in an initial year.
In accounting and statistics, the expression of financial information in a given year as a percentage of an amount in an initial year. A company may treat the first year of its operations or the first year it made a profit as the base year, and express all financial information in those terms. For example, it may issue statements saying that profits in year five were 125% of year one's profits. Occasionally, governments or companies may change the base year to one that is more representative of "normal" performance.