Syllabus F. Other Assignments F2. Prospective Financial Information

F2a. Definition of PFI 1 / 4

Syllabus F2a)

a) Define and describe the purpose of each type of assignment and analyse the appropriate level of assurance that may be offered by a professional firm in relation to these assignments.

Prospective financial information is ‘future information’

It covers:

  1. Forecasts up to one year ahead

  2. Projections up to five years ahead


  • are based on expected future events


  • are based on hypothetical assumptions

A Hypothetical Illustration

  • is based on assumptions about uncertain future events and undecided management actions


  • are based on assumptions about future performance