What is prospective financial information?

Prospective financial information means information based on assumption about events that may occur in the future and possible actions by entity.

Prospective financial information can be either:

forecast – these are prospective financial information based on assumptions about the future events which management expect to take place and actions management expect to take.

Projection – these are prospective financial information based on hypothetical assumptions about future events and management actions or a mix of best estimates and hypothetical assumptions

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