Related Discussions

• Compilations of Future-orientated Financial Information – AASB

• Jan 24, 2024

• At its meeting on January 24, 2024, the AASB discussed issues related to the project to develop a Canadian Standard on Related Services (CSRS) on Compilation Engagements on Future-oriented Financial Information that will replace Assurance and Related Services Guideline 16, Compilation of a Financial Forecast or Projection. Key issues discussed included: (a) revisions to the definitions of “hypotheses”, “hypothetical assumptions”, and “projection”, and how these changes enhance the interconnectivity of those terms; (b) whether there should be a requirement to disclose the purpose of the projection and, if so, what form such disclosure may take; (c) the proposed reporting requirements and illustrative compilation engagement reports; and (d) whether the proposed CSRS should include a requirement for the practitioner to request a written representation letter from management.

• Future-orientated Financial Information – AASB

• May 25, 2023

• At its meeting on 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. 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 and 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.

• Future-orientated Financial Information – AASB

• Jan 23, 2023

• At its meeting on January 23, 2023, the AASB discussed issues related to the project to develop a new Canadian Standard on compilations of future-oriented financial information that will replace AuG-16. 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.

• Future-orientated Financial Information – AASB

• Jun 06, 2022

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

• Future-orientated Financial Information – AASB

• Jan 20, 2022

• At its meeting on January 20-21, 2022, the AASB discussed issues related to the development of a new Canadian Standard on Related Services on the compilation of FOFI. Key issues discussed included: the principles essential for compiled FOFI not to be misleading; engagement acceptance when compiled FOFI is intended for general use; and distinguishing between a forecast and projection.

• Future-orientated Financial Information – AASB

• Oct 15, 2021

• At its meetings on October 15 and 18, 2021, the AASB discussed issues related to the development of a new Canadian Standard on Related Services (CSRS) on compiling FOFI. Key issues discussed included: (i) the scope of the new CSRS; (ii) the description of a FOFI compilation engagement; (iii) the practitioner’s knowledge of the entity and its environment; and (iv) the implications of the absence of a FOFI accounting framework.

• Future-orientated Financial Information – AASB

• Sep 11, 2021

• At its meeting on September 11-12, 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.

• Future-Orientated Financial Information – AASOC

• May 18, 2021

• At its meeting on May 18, 2021, the AASOC was advised that the FOFI project will pilot a new approach to speed up time-to-market. The proposed new standard is estimated to be completed by January 2023. A key element of the approach is to appoint a Reference Group. The Reference Group will include users and preparers who provide input throughout the development of the new standard. The AASB hopes that a Reference Group will serve as a sounding board for key issues, save time in obtaining user feedback, and help the Task Force identify issues sooner. Mr. Turner, Director of the AASB, noted that the AASB’s next steps include recruiting for the Reference Group and for the Task Force, with the first Task Force meeting planned for June 2021.AASOC supported the AASB’s new approach.

• Future-orientated Financial Information – AASB

• Apr 07, 2021

• At its meeting on April 7, 2021, the AASB approved a project proposal to develop a Canadian Standard on Related Services to replace Assurance and Related Services Guideline 16, Compilation of a Financial Forecast or Projection.

• Future- Orientated Financial Information – AASB

• Feb 16, 2021

• At its meeting on February 16, 2021, the AASB discussed elements of a possible project proposal to revise or replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection, including the benefits of establishing a task force and a reference group to supplement the activities of a task force. The AASB expects to review a project proposal for AuG-16 at a future meeting.

• Future-Oriented Financial Information - AASB

• Nov 30, 2020

• At its meeting on November 30/December 1, 2020, the AASB reviewed the feedback received from a practitioner’s survey and the outreach conducted with provincial body practice advisers related to AuG-16, Compilation of a Financial Forecast or Projection. The Board discussed public interest issues identified from the outreach, agreeing to consider a project proposal with respect to AuG-16 at a future meeting.

• Future-Orientated Financial Information – AASOC

• Mar 25, 2020

• At its meeting on March 25, 2020, the AASOC received a briefing from Mr. Eric Turner, Director of the AASB staff regarding the impact of the removal of Part V of the CPA Canada Handbook on AuG-6 and AuG-16. He noted that the AASB had simply added a notice to these Audit Guidelines to alert stakeholders of the changes in Part V of the Handbook related to Section 4250. The AASOC concluded that the AASB had followed due process with proper regard for the public interest in developing and approving the amendments to AuG-6 and AuG-16.

• Future- Orientated Financial Information – AASB

• Mar 09, 2020

• At its meeting on March 9-10, 2020, the AASB unanimously approved a notice that will be placed in AuG-6 and AuG-16 This notice was necessary because of the Board’s decision to remove Section 4250 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 to the CPA Canada Handbook – Assurance in June 2020.

• Future- Orientated Financial Information – AASB

• Jan 23, 2020

• At its meeting on January 23-24, 2020, the AASB discussed how the Accounting Standards Board’s (AcSB) decision to withdraw Part V of the CPA Canada Handbook – Accounting affects Assurance and Related Services Guidelines AuG-6 and AuG-16. AuG-6 and AuG-16 both refer to Section 4250, Future-oriented Financial Information in Part V of the Handbook. The Board decided to amend the introductions to AuG-6 and AuG-16 to address the changes being made by the AcSB.

• Future-Oriented Financial Information - AASB

• Apr 27, 2016

• At its meeting on 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.

• Future-Oriented Financial Information - AASB

• Sep 16, 2015

• At its meeting on 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.