Framing is how situations are presented to people. How situations are presented affect the decisions that people make. Framing has a role in the work of FP&A practitioners.
FP&A practitioners can work through narrow frames. Narrow frames can appear on income statements through revenues from specific products, executive salaries, and equipment depreciation. Narrow frames can appear on balance sheets through work in process inventory, interest payable, and common stock. Narrow frames provide an opportunity for FP&A practitioners to employ a bottom-up approach to their work. Employing this approach improves the ability to be precise in areas like financial plans.