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Guidance for preparing prospective financial information

ICAEW’s framework for preparing prospective financial information (PFI) was published in 2003. The framework includes principles of preparation and is mainly applied to PFI prepared in a capital markets transaction context. We believe that common preparation principles would be of value for any financial information that relates to a future period, or has a future date. What do you think?

The report considers:

  1. The case for updating ICAEW’s 2003 framework
  2. The purpose and structure of an updated framework
  3. The preparation principles that would underpin an updated framework
  4. The type of PFI that an updated framework might address
  5. The need for application guidance for different types of PFI

Who does this consultation affect?

‘This initiative is of relevance to anyone preparing, reviewing, or advising on financial forecasts or projections, of virtually any kind and for almost all purposes - from formal finance-raising documents to business planning in a private company.’ David Petrie, Head of Corporate Finance, ICAEW

There is an upward trend for business reporting that relies on, or is underpinned by PFI. At the same time, the environment in which businesses prepare PFI has to accommodate a range of factors such as capital markets regulatory requirements, practices in business fundraising markets, developments in business reporting, information availability, as well as expectations regarding accountability and governance.

Those charged with preparing PFI benefit from an accepted preparation framework. Those with oversight, including boards and regulators, investors and potential funders, analysts, regulators and business stakeholders are all PFI users. There is a public interest in having common standards for the preparation of PFI.

Share your thoughts

This paper is part of an ICAEW project to replace guidance that was published in 2003

ICAEW’s Corporate Finance Faculty is running the project and would like to hear from all those with an interest in contributing to a preparation framework that enables businesses to communicate PFI. 

The Corporate Finance Faculty would welcome the opportunity to receive feedback in through roundtables or separate meetings. Please contact katerina.joannou@icaew.com to arrange this.

Comments on this report can be entered in the form below. We may publish or refer to comments received. Please state in your email if you do not want your comments to be attributed.

The consultation period will run until 31 October 2017.