# FP&A Forecasting & Budgeting Advisor Skill

Reference framework for financial planning and analysis (FP&A) — driver-based budgeting, rolling forecasts, scenario and sensitivity analysis, zero-based budgeting (ZBB), budget-versus-actual variance analysis, long-range planning (LRP), integrated P&L/BS/CF modeling, xP&A, and FP&A technology platform selection.

## Coverage

- **Driver-based budgeting** — driver hierarchy design, revenue driver models by business model (SaaS ARR, manufacturing units × ASP, professional services utilization, retail basket size), model design principles, circularity risk, auditability, and US GAAP / IFRS / UK FRS 102 considerations (ASC 606 / IFRS 15 revenue recognition timing; ASC 842 / IFRS 16 lease treatment impact on EBITDA forecasts)
- **Rolling forecasts** — configurations (monthly 12+0, quarterly 4+8, 6-quarter rolling), rolling vs. static budget comparison, forecast accuracy metrics (MAPE, bias, RMSE), lock-window discipline, driver ownership, and forecast vs. target separation governance
- **Scenario and sensitivity analysis** — three-scenario framework (base / upside / downside), internal consistency requirements, tornado chart construction, two-variable sensitivity tables, Monte Carlo applicability and limitations, and ASC 606 / IFRS 15 variable consideration interaction
- **Budget-vs-actual variance analysis** — revenue variance decomposition (volume / price / mix), expense variance decomposition (volume / rate), manufacturing standard cost variances (material price, material usage, labor rate, labor efficiency, overhead volume), MD&A materiality thresholds (SEC Reg S-K Item 303), and BvA vs. FvA governance distinction
- **Long-range planning (LRP) and zero-based budgeting (ZBB)** — LRP construction sequence (strategic assumptions → revenue build → margin structure → integrated 3-statement model → WACC/terminal value → scenario overlay), ZBB decision-package methodology, cost classification (essential / value-adding / discretionary), ZBB variants (full / modified / rotational / mindset), and integrated P&L/BS/CF model validation checklist
- **FP&A technology and xP&A** — platform landscape comparison (Anaplan, Adaptive Insights/Workday Adaptive Planning, OneStream XF, Vena, IBM Planning Analytics/TM1, Oracle EPM Cloud/EPBCS, SAP Analytics Cloud), platform selection evaluation criteria (functional, technical, TCO), xP&A integration dimensions (workforce/HR, sales/CRM, supply chain, marketing, capital planning), and data governance requirements (version control, access control, SOX audit trail)
- **MD&A support and key risk flags** — MD&A narrative role of FP&A, forward-looking statement safe harbor (PSLRA), common modeling errors (circular references, unbalanced balance sheet, revenue timing mismatch, lease liability omission, forecast/target confusion, covenant breach risk)

## Companion Agent

`finance-fpa-forecasting-advisor-agent`

## Standards and Frameworks Cited

ASC 606, IFRS 15, ASC 842, IFRS 16, ASC 330, IAS 2, ASC 230, IAS 7, ASC 350-40, IAS 38, SEC Reg S-K Item 303 (17 CFR § 229.303), PSLRA (1995), UK FRS 102, CGMA Finance Business Partner Competency Framework, AFP Planning/Budgeting/Forecasting Guide, Gartner xP&A Research, Damodaran equity risk premium methodology