A comparison of records or balances that identifies and explains differences under a defined method.
Why the distinction matters
A useful reconciliation preserves its inputs, cut-off, transformations and conclusions. A final number without the supporting bridge is difficult to reproduce. Distinguish timing differences from unexplained breaks and keep the basis for that distinction.
In the working file
Illustrative example
A hypothetical requirement of £100,000 is compared with £98,500 of eligible resources. The £1,500 difference needs explanation and the appropriate response; a spreadsheet cannot determine legal compliance.
Use the term in context
Record the legal entity, activity, period and applicable source alongside the term. A familiar label does not remove the need to establish scope. Our operating playbook connects this definition to a practical process.
Read the related playbookSources & scope
Primary sources used for this research edition. Document dates and commencement dates are different fields. Recheck the issuing authority before acting.
- FCA Handbook: CASS 15: relevant fundsHandbook · source reviewed 12 November 2026