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Should financial models have circular referencing?

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Question added by Ranjan Sharma , Investment Banker , Abu Dhabi Commercial Bank
Date Posted: 2016/05/22
Nizam Ahmed
by Nizam Ahmed , Senior Project Manager , Flextrade Systems Pte Ltd

Worst problem you can have in a finacial model.

This is the error one needs to be most carefull about in Financial modeling.

Intizar Rajput
by Intizar Rajput , Manager Finance & Accounts , Creative Junction (Pvt.) Limited

No, Financial Models should not have circular referencing, because due to to circular references correct results will not be shown in the models

Segundo Rodriguez
by Segundo Rodriguez , Head-Financial Planning Dept , Central Azucarera de la Carlota, Inc

No,it should not have because it will crash your model, by not giving you a value at all in those fields in the report or worksheets involved.

Duncan Robertson
by Duncan Robertson , Strategy Consultant , Duncan Robertson Consultancy

No, certainly not.     

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