Clear reporting language
Financial explanations should help a reader understand what changed and why.
Name the movement
Start with the account, period and direction of change. Avoid vague descriptions such as improved performance when the actual movement concerns collections, inventory or a one-off transaction.
Separate cause and effect
Explain the operational cause before the accounting effect. Distinguish recorded facts from management expectations. Readers should be able to tell which statements describe the period and which depend on future events.
Edit for the reader
Define technical terms when they are necessary and remove them when they are not. Check that the narrative agrees with the statements and notes. Concise language is valuable only when it preserves the meaning.
