Baselining is establishing what you release as the final output and using it to evaluate subsequent revisions. You can baseline reports, forms, plans, hardware, software, and many other items.
For example, you might have a report that will require many changes in the future. It is the document that everyone references when they must change it. You might designate the first report release 1.0 give each subsequent minor release a number like 1.1, 1.2, and so on, and each subsequent major release as 2.0, 3.0, and so on.
Baselining offers two advantages. First, it allows evaluating the impact of a change on your product. For instance, you can determine what aspects of your output will need altering and to what degree.
Second, it enables you to control changes. You can determine which changes are critical and can create a timetable to implement them.
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