Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 43
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of the Tasks Providing Confidence (ISTPC) 3400 "Check of forecast financial information" should be considered together with the Preface to the Collection of International standards of quality control, audit, survey checks, the other tasks providing confidence, and tasks on rendering the accompanying services in which requirements to application of MSZOU and the sphere of their application are established.
1. The purpose of this The International Standard of the Tasks Providing Confidence (ISTPC) is establishment of standards and provision of instructions for task performance for check of forecast financial information and release of the corresponding conclusions, including procedures of check of the assumptions based on the most exact assessment and hypothesis. This standard is not applied to check of the forecast financial information stated in the generalized or descriptive type, for example in the Section of the annual statement of the organization in which the analysis and assessment is provided by management of financial position and results of activities though many of the procedures specified in it can be suitable for such check.
2. During task on check of forecast financial information the auditor shall obtain sufficient competent evidences of the following factors:
(a) the fact that the management assumptions based on the best assessment, which are the cornerstone of forecast financial information cannot be acknowledged unreasonable, and hypotheses (in the presence of such) answer the purpose of information;
(b) whether forecast financial information properly based on assumptions is prepared;
(c) whether forecast financial information properly is provided and whether all essential assumptions, including accurate specifying are opened in due measure, whether these assumptions are based on the most exact estimates or they are hypothetical;
(d) whether forecast financial information according to the financial reporting for last periods with use of the proper principles of financial accounting is prepared.
3. Forecast financial information - the financial information based on assumptions concerning events which can take place in the future, and possible actions of the organization. It is substantially subjective in character, and its preparation requires use of professional judgment. Forecast financial information can have the form of the forecast or perspective assessment or represent their combination, for example the forecast for one year with indication of perspective assessment for five years.
4. The forecast - the forecast financial information prepared based on assumptions concerning future events which shall take place according to expectations of management, and actions which the management plans to undertake for date of preparation of information (the assumption based on the best assessment).
5. Perspective assessment - the forecast financial information prepared on the basis:
(a) hypothetical assumptions concerning future events and actions of management which will optionally take place for example in cases when some organizations are at the initial stage of business or consider the possibility of considerable change of nature of the activities, or;
(b) combinations of the most exact assessment and hypothetical assumptions.
Such information shows what consequences could step on date of preparation if there were these events and actions (scenario "that if").
6. Forecast financial information can include the financial reporting or one or several financial statement elements and can be prepared:
(a) as the internal management tool, for example, for evaluating possible capital investments, or
(b) for distribution among the third parties, for example, in type:
- the prospectus containing information for potential investors concerning future expectations;
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