# Review EBITDA and compare the plan with Finance

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Audience: Company owners and finance controllers
Reading time: 6 min
Updated: 2026-10-29T00:00:00.000Z

Read posted financial performance and compare matching legal entity, currency, scope and completed months.

## Use posted results in Company financial intelligence

Finance distinguishes connected commercial activity, posted accounting records and forecasts. Management EBITDA is based on posted ledger performance for the chosen entity, currency and period, with reviewed account classifications. Missing classifications or activity are not silently treated as a reliable zero.

The bridge starts from net income and adds net interest, profit tax and depreciation/amortization. Read the recorded method, component values, source journal references and classification coverage. EBITDA is different from revenue, cash flow and operating profit.

## Review the classification basis

An authorized owner/controller reviews relevant account mappings. A classification change alters the management performance basis and should be reviewed before comparing periods. Collty does not rename arbitrary exclusions “EBITDA” or automatically invent adjusted EBITDA.

Incomplete or unclassified evidence is shown as unavailable. Complete the ledger and classification review rather than assuming that absent data means no cost.

## Connect the business plan to the same accounting scope

1. **Choose the entity:** Open Financial model & unit economics → Connect Finance and compare actuals. Choose the actual legal entity and explicitly confirm that the business and accounting scope match.
2. **Choose the month:** Use an exact completed reporting month in the forecast horizon. Currency, legal entity and dates must match; a partial current month or an out-of-horizon period is not a like-for-like comparison.
3. **Read variances:** Compare revenue, EBITDA and net income from posted results with the accepted forecast. Discuss the source figures with the financial assistant, then review any proposed model changes before applying them.

## Use the measure with its financial context

EBITDA is a management measure. Present it alongside the income and cash-flow picture and retain its reconciliation. A completed calculation does not certify IFRS or US GAAP conformity. The relevant reporting framework and disclosure duties depend on the company and jurisdiction.

### Official references

- [SEC — Non-GAAP Financial Measures, Sections 103.01–103.02](https://www.sec.gov/rules-regulations/staff-guidance/corporation-finance-interpretations/non-gaap-financial-measures) - US disclosure guidance on EBITDA presentation and reconciliation; not a worldwide reporting law.
- [IFRS Foundation — IFRS 18](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-18-presentation-and-disclosure-in-financial-statements/) - Presentation and management-defined performance measures. Effective for annual periods beginning on or after 1 January 2027, with earlier application permitted.

## Related guides

- [Read Connected Finance Analytics](https://collty.com/help/commercial/read-connected-finance-analytics)
- [Prepare Entity Accounting And Close Periods](https://collty.com/help/commercial/prepare-entity-accounting-and-close-periods)
- [Build Financial Model And Unit Economics](https://collty.com/help/commercial/build-financial-model-and-unit-economics)