Syllabus F. Other Assignments F2. Prospective Financial Information

F2a. Definition of PFI

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