Define Basis
 

I was trying to explain the YEARFRAC function to someone. I use it and
always omit the Basis. But I couldn't really explain what the different
Basis values mean. Oh, I know it determines how the days are counted .. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it and
always omit the Basis. But I couldn't really explain what the different
Basis values mean. Oh, I know it determines how the days are counted .. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

Marty,

Unfortunately that is the same as the help page and it does not explain the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a year
and the other 3 are based on actual days and different days in the year.

But it is not clear what the difference between the US and the European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it and
always omit the Basis. But I couldn't really explain what the different
Basis values mean. Oh, I know it determines how the days are counted .. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

Wikipedia explains the differences:

http://en.wikipedia.org/wiki/Day_count_convention

Richard



Martin Fishlock wrote:
Marty,

Unfortunately that is the same as the help page and it does not explain the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a year
and the other 3 are based on actual days and different days in the year.

But it is not clear what the difference between the US and the European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it and
always omit the Basis. But I couldn't really explain what the different
Basis values mean. Oh, I know it determines how the days are counted .. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

The difference is that:

U.S. (NASD) method. If the starting date is the 31st of a month, it
becomes equal to the 30th of the same month. If the ending date is the
31st of a month and the starting date is earlier than the 30th of a
month, the ending date becomes equal to the 1st of the next month;
otherwise the ending date becomes equal to the 30th of the same month.


European method. Starting dates and ending dates that occur on the
31st of a month become equal to the 30th of the same month.

Why? Who knows. It is accountancy, and we all know that is all about getting
the answer you want.

I have to ask why bother with YEARFRAC at all.
YEARFRAC, basis 1 produces non-exact years of service for all anniversary
dates except the first.


YEARFRAC, basis = 3 similarly fails to produce exact years for all
anniversary dates except the first.

It is fraught with problems IMO.


--
---
HTH

Bob

(change the xxxx to gmail if mailing direct)


"RichardSchollar" wrote in message
ups.com...
Wikipedia explains the differences:

http://en.wikipedia.org/wiki/Day_count_convention

Richard



Martin Fishlock wrote:
Marty,

Unfortunately that is the same as the help page and it does not explain
the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a
year
and the other 3 are based on actual days and different days in the year.

But it is not clear what the difference between the US and the European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year
vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it
and
always omit the Basis. But I couldn't really explain what the
different
Basis values mean. Oh, I know it determines how the days are counted
.. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which
Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

Thank you, one and all! You have given me some good food for thought.

Richard's recommendation in Wikipedia was spot on and Bob's details really
put it in persepctive.

BTW, I use the DATEDIF function as well. Since Bob has pointed out the
imprecision of YEARFRAC, do you believe that DATEDIF is more reliable or less
reliable than YEARFRAC?

"Bob Phillips" wrote:

The difference is that:

U.S. (NASD) method. If the starting date is the 31st of a month, it
becomes equal to the 30th of the same month. If the ending date is the
31st of a month and the starting date is earlier than the 30th of a
month, the ending date becomes equal to the 1st of the next month;
otherwise the ending date becomes equal to the 30th of the same month.


European method. Starting dates and ending dates that occur on the
31st of a month become equal to the 30th of the same month.

Why? Who knows. It is accountancy, and we all know that is all about getting
the answer you want.

I have to ask why bother with YEARFRAC at all.
YEARFRAC, basis 1 produces non-exact years of service for all anniversary
dates except the first.


YEARFRAC, basis = 3 similarly fails to produce exact years for all
anniversary dates except the first.

It is fraught with problems IMO.


--
---
HTH

Bob

(change the xxxx to gmail if mailing direct)


"RichardSchollar" wrote in message
ups.com...
Wikipedia explains the differences:

http://en.wikipedia.org/wiki/Day_count_convention

Richard



Martin Fishlock wrote:
Marty,

Unfortunately that is the same as the help page and it does not explain
the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a
year
and the other 3 are based on actual days and different days in the year.

But it is not clear what the difference between the US and the European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year
vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it
and
always omit the Basis. But I couldn't really explain what the
different
Basis values mean. Oh, I know it determines how the days are counted
.. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which
Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

In short, IMO yes.

--
---
HTH

Bob

(change the xxxx to gmail if mailing direct)


"Janie" wrote in message
...
Thank you, one and all! You have given me some good food for thought.

Richard's recommendation in Wikipedia was spot on and Bob's details really
put it in persepctive.

BTW, I use the DATEDIF function as well. Since Bob has pointed out the
imprecision of YEARFRAC, do you believe that DATEDIF is more reliable or
less
reliable than YEARFRAC?

"Bob Phillips" wrote:

The difference is that:

U.S. (NASD) method. If the starting date is the 31st of a month, it
becomes equal to the 30th of the same month. If the ending date is the
31st of a month and the starting date is earlier than the 30th of a
month, the ending date becomes equal to the 1st of the next month;
otherwise the ending date becomes equal to the 30th of the same month.


European method. Starting dates and ending dates that occur on the
31st of a month become equal to the 30th of the same month.

Why? Who knows. It is accountancy, and we all know that is all about
getting
the answer you want.

I have to ask why bother with YEARFRAC at all.
YEARFRAC, basis 1 produces non-exact years of service for all anniversary
dates except the first.


YEARFRAC, basis = 3 similarly fails to produce exact years for all
anniversary dates except the first.

It is fraught with problems IMO.


--
---
HTH

Bob

(change the xxxx to gmail if mailing direct)


"RichardSchollar" wrote in message
ups.com...
Wikipedia explains the differences:

http://en.wikipedia.org/wiki/Day_count_convention

Richard



Martin Fishlock wrote:
Marty,

Unfortunately that is the same as the help page and it does not
explain
the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a
year
and the other 3 are based on actual days and different days in the
year.

But it is not clear what the difference between the US and the
European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365
days/year
vs.
the actual number of days in a year, which is different on a leap
year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use
it
and
always omit the Basis. But I couldn't really explain what the
different
Basis values mean. Oh, I know it determines how the days are
counted
.. but
exactly HOW???

The online help doesn't explain the value at all, and so I was
hoping
someone could give me a good definition on how to determine which
Basis one
should use under which circumstances.

Thankx for any insight.

Define Basis
 

It really depends on what you want to do with the result.

If you are working in a specific field then the yearfrac may be useful.

Date calculations are always more difficult to deal with especially with the
leap year.

But if you are working in an enviroment that the yearfrac is speciified as
the way to go then use it but just be careful of the results.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Janie" wrote:

Thank you, one and all! You have given me some good food for thought.

Richard's recommendation in Wikipedia was spot on and Bob's details really
put it in persepctive.

BTW, I use the DATEDIF function as well. Since Bob has pointed out the
imprecision of YEARFRAC, do you believe that DATEDIF is more reliable or less
reliable than YEARFRAC?

"Bob Phillips" wrote:

The difference is that:

U.S. (NASD) method. If the starting date is the 31st of a month, it
becomes equal to the 30th of the same month. If the ending date is the
31st of a month and the starting date is earlier than the 30th of a
month, the ending date becomes equal to the 1st of the next month;
otherwise the ending date becomes equal to the 30th of the same month.


European method. Starting dates and ending dates that occur on the
31st of a month become equal to the 30th of the same month.

Why? Who knows. It is accountancy, and we all know that is all about getting
the answer you want.

I have to ask why bother with YEARFRAC at all.
YEARFRAC, basis 1 produces non-exact years of service for all anniversary
dates except the first.


YEARFRAC, basis = 3 similarly fails to produce exact years for all
anniversary dates except the first.

It is fraught with problems IMO.


--
---
HTH

Bob

(change the xxxx to gmail if mailing direct)


"RichardSchollar" wrote in message
ups.com...
Wikipedia explains the differences:

http://en.wikipedia.org/wiki/Day_count_convention

Richard



Martin Fishlock wrote:
Marty,

Unfortunately that is the same as the help page and it does not explain
the
basis for calculating the fraction of the year.

The five options are

0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360

It appears that the 30/360 are based on 30 day months with 360 days a
year
and the other 3 are based on actual days and different days in the year.

But it is not clear what the difference between the US and the European
methods.

--
Hope this helps
Martin Fishlock
Please do not forget to rate this reply.


"Marty S." wrote:

Hi, Janie,

Use this Microsoft web link for the complete explanation:

http://office.microsoft.com/en-us/ex...093441033.aspx

The 4 basis options cover various different accounting approaches to
breaking down accounting (e.g. 30 day accounting months / 365 days/year
vs.
the actual number of days in a year, which is different on a leap year)

Hope this helps.

Regards,
Marty S.

"Janie" wrote:

I was trying to explain the YEARFRAC function to someone. I use it
and
always omit the Basis. But I couldn't really explain what the
different
Basis values mean. Oh, I know it determines how the days are counted
.. but
exactly HOW???

The online help doesn't explain the value at all, and so I was hoping
someone could give me a good definition on how to determine which
Basis one
should use under which circumstances.

Thankx for any insight.