Future-Oriented Financial Information (Possible Amendments to AuG-6 and AuG-16) [Research]

Next Steps:

The AASB will discuss the project details at a future meeting

Last up­dated:

June 2022

Overview

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

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

Key issues that will be addressed include: (i) whether there is still a need for the Handbook to contain authoritative guidance on future-oriented financial information; (ii) if authoritative guidance is needed, whether that guidance should be in the form of a standard or one or more guidelines; (iii) the effect of the absence of an accounting standard relating explicitly to this information; and (iv) 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).

 

Other developments

September 2020

On September 21, 2020, the AASB released a survey for practitioners that assist entities in preparing future-oriented financial information (FOFI). FOFI includes budgets, forecasts or projections. Complete the survey by October 23, 2020.

June 2020

On June 1, 2020, the AASB added a notice to both AuG-6 and AuG-16 regarding the AcSB’s decision to remove Part V from the CPA Canada Handbook – Accounting and to retain the content of Section 4250 as non-authoritative guidance for future-oriented financial information in the CPA Canada Standards and Guidance Collection.

January 2012

In January 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 and AuG-16.

 

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