From vanguard-frontier-agentic
Provides variance decomposition (Volume/Price/Rate/Mix/One-Time) and MD&A commentary guidance per SEC Regulation S-K Item 303 for FP&A and corporate finance teams.
How this skill is triggered — by the user, by Claude, or both
Slash command
/vanguard-frontier-agentic:variance-analysis-advisorThis skill is limited to the following tools:
The summary Claude sees in its skill listing — used to decide when to auto-load this skill
Provide the complete analytical framework for variance decomposition and MD&A commentary drafting, consistent with SEC Regulation S-K Item 303 requirements and FASB ASC 270 (Interim Reporting) expectations.
Provide the complete analytical framework for variance decomposition and MD&A commentary drafting, consistent with SEC Regulation S-K Item 303 requirements and FASB ASC 270 (Interim Reporting) expectations.
Required disclosures:
Key SEC guidance (Release 33-8350):
Required disclosures:
Key SEC guidance: Interim MD&A may be less detailed than annual but must cover material changes. The SEC staff frequently comments on interim MD&A that simply repeats boilerplate from prior periods without explaining period-specific drivers.
For every material revenue or cost-of-revenue variance, decompose into:
| Factor | Definition | How to Compute |
|---|---|---|
| Volume effect | Change attributable to selling more/fewer units | (Current units − Prior units) × Prior price |
| Price/Rate effect | Change attributable to price changes | Current units × (Current price − Prior price) |
| Mix effect | Change attributable to shift in product/segment composition | Total change − Volume effect − Price effect − FX effect |
| One-time items | Non-recurring items: restructuring, asset sales, legal settlements | Identify and quantify each; tag as one-time |
Total check: Volume + Price + Mix + One-time = Total $ variance ± rounding
| Factor | Definition |
|---|---|
| Headcount-driven | Change in FTE count × average cost per FTE |
| Rate-driven | FTE count × change in average cost per FTE (compensation, benefits) |
| Program-driven | Discretionary spend (marketing programs, R&D projects, capex timing) |
| One-time | Non-recurring charges: impairments, restructuring, severance |
Disclose separately when the company reports in a currency other than functional currencies of subsidiaries:
1. Overview (1-2 sentences): "Results for [period] reflected [top driver], partially offset by [counter-driver]."
2. Revenue:
a. Total revenue: $X vs. $Y prior period (+/-$Z, +/-W%)
b. By segment or product line (if material)
c. Driver explanation: volume, pricing, mix, one-time
d. Geographic breakdown (if material)
3. Cost of revenues / Gross margin:
a. Total cost: $X vs. $Y (+/-$Z)
b. Gross margin: X% vs. Y% (±Z bps)
c. Driver explanation: material cost drivers
4. Operating expenses (by line):
a. S&M / R&D / G&A: each with $ change, % change, driver explanation
5. Income from operations:
a. GAAP operating income / loss: $ change
6. Non-GAAP reconciliation (if company presents non-GAAP): per SEC Non-GAAP guidance
7. Liquidity and Capital Resources (separate section, not covered here)
Tag each paragraph before finalizing:
| Tag | Meaning |
|---|---|
required-disclosure | Mandated by S-K 303; must be in the filing |
material-trend | Material change meeting quantitative/qualitative threshold |
management-chosen | Discretionary color; legal must review for forward-looking statement compliance |
safe-harbor | Forward-looking statements that require safe-harbor language under PSLRA |
Quantitative guidance (practice standard):
Qualitative override: A <5% variance is still material if it represents a reversal of a trend, involves a new business line, or signals a future uncertainty.
Single-driver concentration risk: If one driver accounts for >80% of a total variance explanation, flag for auditor review — this pattern appears in many restatement cases (channel stuffing, bill-and-hold).
Flag these patterns as risk indicators requiring internal audit or external auditor review:
| Trigger | Pattern | Associated Standard |
|---|---|---|
| Revenue recognition cutoff | Spike in deferred revenue or unearned at period-end; large reversals in subsequent period | ASC 606-10-25-23 |
| Channel stuffing | Revenue increase concentrated in last two weeks of period with high return rates | ASC 606-10-25-1(e) collectability |
| Bill-and-hold | Physical goods revenue recognized without customer possession or control | ASC 606-10-55-83 through 55-84 |
| Improper capitalization | Unusual decrease in operating expense correlated with unusual increase in capex | ASC 340-40, ASC 730 |
| One-time items misclassified | Operating income improved significantly but pre-tax income did not → items below the line? | S-K 303 materiality |
| FX timing games | Revenue spike correlated with period-end FX rate movements | ASC 830 functional currency |
| Segment recast | Business unit results improve markedly in a quarter when segment definitions changed | ASC 280-10 |
Every output from this agent must end with:
Advisory: This draft is advisory and based solely on the data and descriptions provided. It does not constitute authoritative financial guidance, legal advice, or a professional opinion. Final disclosure language requires CFO certification, Disclosure Committee review, and approval from legal counsel and external auditors before filing with the SEC or any regulatory body. Forward-looking statements require specific safe-harbor language under the Private Securities Litigation Reform Act (PSLRA).
npx claudepluginhub raishin/vanguard-frontier-agentic --plugin vanguard-frontier-agenticDecomposes financial variances into price/volume/mix/headcount drivers with formulas, narratives, examples, and waterfall analysis for budget vs. actual or period-over-period changes.
Generates variance commentary for P&L and balance-sheet lines, comparing current vs prior period and vs budget with driver explanations. Useful for month-end close and management reporting.
Analyzes 10-K, 10-Q, earnings releases, and proxy statements to extract investment insights from revenue breakdowns, MD&A, risks, and management tone.