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Other Canadian Standards

Compilations of Future-oriented Financial Information (FOFI)

Summary

This project will replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection, with a new Canadian Standard on Related Services (“the CSRS”). 

AuG-16 was first issued in 1993 and has not been updated since.  When the AASB issued a new CSRS 4200, Compilation Engagements, to replace Section 9200, Compilation Engagements, the AASB determined that it should conduct preliminary research. The purpose of the research was to understand the implications of CSRS 4200 on AuG-16 and challenges faced by practitioners when assisting entities in compiling FOFI.

The public interest issues identified by the research include the following:

Staff Contact(s)

Svetlana Berger, CPA, CA, MAcc Associate Director, Auditing and Assurance Standards Board

Amalia Spensieri, CPA, CA Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Completed in 2020

  • Approving project

    Project proposal approved in April 2021

    The FOFI Task Force is currently deliberating issues while seeking input from the Reference Group

  • Consulting stakeholders

    Anticipated Exposure Draft approval in October 2023

  • Deliberating feedback
  • Final pronouncement

News


July 20, 2021

News

Compilations of Future-oriented Financial Information (FOFI) Reference Group Established

The AASB has recruited members for the Compilations of Future-oriented Financial Information  (FOFI) Reference Group. The Compilations of FOFI Reference Group will assist the AASB as it develops a new Canadian Standard on Related Services (CSRS) to replace current Assurance and Related Services Guideline (AuG)-16, Compilation of a Financial Forecast or Projection.

Meeting & event summaries


June 7, 2023

AASB Decision Summary – May 25, 2023

The AASB discussed issues related to the project to develop a Canadian Standard on Related Services (CSRS) on compilations of future-oriented financial information that will replace AuG-16, Compilation of a Financial Forecast or Projection. Key issues discussed included:

  • the definitions of “best estimate,” “best estimate assumptions,” “hypothetical assumptions,” “forecast,” and “projection”; 
  • the practitioner’s responsibility when actual financial results of an expired period are incorporated into the compiled future-oriented financial information; 
  • the relationship between three key dates: 
    • the effective date of the underlying assumptions;
    • the date management assumes responsibility for the compiled future-oriented financial information; 
    • the date of the compilation engagement report;
  • the practitioner’s work effort when assisting management to compile future-oriented financial information, including the underlying assumptions; and 
  • the project’s timeline, including the planned issuance of the exposure draft in September 2024. 

January 23, 2023

AASB Decision Summary – January 23, 2023

The AASB discussed issues related to the project to develop a new Canadian Standard on Related Services on compilations of future-oriented financial information that will replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection. Key issues included:

  • the definitions of “forecast”, “hypotheses”, and “projection”;
  • the definition of “pro-forma financial information”; and
  • the scope of the proposed new standard.

June 27, 2022

AASB Decision Summary – June 6-7 2022

The AASB discussed issues related to developing a new Canadian standard on compilations of FOFI. This new standard will replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection. Key issues discussed included:

  • whether the new standard should clarify the AuG-16 definitions of “forecast” and “projection”;
  • whether the new standard’s scope should include budgets and pro forma financial information; and
  • what requirements and guidance might be needed in the new standard to guide the practitioner to compile FOFI that is not misleading.

September 9, 2021

AASB Decision Summary – September 9-10, 2021

The AASB received an update on its Compilation of FOFI project, including a revised timeline. The Board discussed the proposed approaches to using the FOFI Reference Group and to developing a new Canadian Standard on Related Services.

March 9, 2020

AASB Decision Summary — March 9-10, 2020

The AASB unanimously approved a notice that will be placed in Assurance and Related Services Guideline (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. This notice was necessary because of the Accounting Standards Board’s (AcSB) decision to remove Section 4250, Future-oriented Financial Information, from the CPA Canada Handbook – Accounting and retain the content as non-authoritative guidance for future-oriented financial information in the CPA Canada Standards and Guidance Collection.

The AASB unanimously agreed not to expose the notice for public comment because it was developed in response to the AcSB’s decision and there are no other choices for the AASB.

Once AASOC confirms that the AASB followed due process with proper regard for the public interest, it is expected the notice in AuG-6 and AuG-16 will be issued in the CPA Canada Handbook – Assurance in June 2020.

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 voting process.