The Last Twelve Months method estimates an annual amount based on a partial period by adding data from enough preceding months to create a full year's results:
1. | Prior Fiscal Year – Prior Year-to-Date = Additional Months' Data |
2. | Additional Months' Data + Current Year-to-Date = Trailing Twelve Months' Data |
To apply the Last Twelve Months method:
On the Financial Statements Assumptions Sheet, set the Annualization Rate Calculation Method assumption to Last Twelve Months.
From the Financial Statements \ Adjustments \ Income Statements folder, select the worksheet for the most recent income statement.
For each account, enter the total for the prior year's year-to-date in the YTD Prior Year column. For example, if the current partial period is for January through May, enter the January through May amounts from the prior year.
The annualized amounts are calculated automatically and appear in the Last Twelve Months column.