Future-oriented Financial Information

Current Status Next Steps

Project proposal approved.

To be determined.

OBJECTIVE AND SCOPE OF THIS PROJECT

This project will determine what authoritative guidance, if any, is needed in the Handbook to address assurance matters pertaining to future-oriented financial information.

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Currently this information is addressed in two Assurance and Related Services Guidelines:

  • AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document (issued September 1989); and
  • AuG-16, Compilation of a Financial Forecast or Projection (issued February 1993).

Key issues that will be addressed include:

  • whether there is still a need for the Handbook to contain authoritative guidance on future-oriented financial information;
  • if authoritative guidance is needed, whether that guidance should be in the form of a standard or one or more guidelines;
  • the effect of the absence of an accounting standard relating explicitly to this information; and
  • the effect of developments since AuG-6 and AuG-16 were originally issued (for example, Canadian securities regulations no longer require the examination by an independent accountant of future-oriented financial information included in a public offering document).

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PROJECT NEWS & DECISION SUMMARIES

AASB Decision Summary – April 27, 2016
The AASB discussed the way forward for its project to replace Assurance and Related Services Guideline AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, with a new assurance engagement standard. The AASB confirmed the scope of the project and decided to set up a working group of AASB members to support staff on the project.

AASB Decision Summary – September 16-18, 2015 
The AASB discussed the future direction of its project to revise or replace Assurance and Related Services Guideline AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document. The AASB agreed that this project should proceed.

AASB Decision Summary – January 16-17, 2012
The AASB approved a project proposal to develop a new Canadian standard or other authoritative guidance for engagements dealing with prospective financial information. The standard or guidance (if any) will update or replace Assurance and Related Services Guidelines AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, and AuG-16, Compilation of a Financial Forecast or Projection.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.