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AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document

Ef­fec­tive date:

September 1, 1989

[This Guideline is to be read in conjunction with the Preface to the CPA Canada Handbook – Assurance.]

Overview

AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, provides guidance for the public accountant who is asked to undertake an examination of a financial forecast or projection included in a prospectus or other public offering document filed with securities regulatory authorities.

AuG-6 defines “future-oriented financial information” as: information about prospective results of operations, financial position and/or cash flows, based on assumptions about future economic conditions and courses of action. Future-oriented financial information is presented as either a forecast or a projection. “A forecast” is defined as: future-oriented financial information prepared using assumptions all of which reflect the entity's planned courses of action for the period covered given management's judgment as to the most probable set of economic conditions. “A projection” is defined as: future-oriented financial information prepared using assumptions that reflect the entity's planned courses of action for the period covered given management's judgment as to the most probable set of economic conditions, together with one or more hypotheses that are assumptions that are consistent with the purpose of the information but are not necessarily the most probable in management's judgment.

His­tory of AuG-6

Date

De­vel­op­ment

Com­ments

June 2020

AuG-6 refers to Section 4250. On March 1, 2020, the AcSB removed Part V from the CPA Canada Handbook – Accounting, which included Section 4250. The AcSB has, however, retained the content from Section 4250 as non-authoritative guidance for future-oriented financial information in the CPA Canada Standards and Guidance Collection.

No change has been made to this Guideline as a result of the change by the AcSB. Therefore, this Assurance and Related Services Guideline is to be adapted as necessary in the circumstances.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.