IFO4
Loading...The total cash outflow of an organisation over a period before netting against cash inflow from operations. Gross burn measures the magnitude of cost commitments and is therefore the relevant figure for liquidity stress testing. The federation requires gross burn to be reported alongside net burn and total cash position in every monthly disclosure for pre-profit members. Gross burn excludes financing and investing cash flows but includes all operating cash outflows including capitalised items. Period-over-period gross burn variation above ten percent is footnoted under MEV-Annex:4.1.
A construction of late twentieth century venture practice; the prefix gross marks the unnetted form of the burn rate measure.
Federation members report gross burn monthly. Gross burn that does not reconcile to operating cash outflow is a Tier-2 conduct issue under TGS-002:2.3. Stress testing scenarios assume zero revenue and the trailing twelve month gross burn average.
@misc{ifo4_glossary_gross_burn,
title = {{Gross Burn}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{gross-burn}}},
year = {2026},
url = {https://ifo4.org/glossary/gross-burn},
note = {Category: Capital; key: GrossBurn}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.