“Prospective Financial Information (PFI – MEANING

ISAE 3400 defines PFI as financial information based on:
-Assumptions about events that may occur in the future; and
-Possible actions by an entity.

A forecast is defined by ISAE 3400 as PFI prepared on the basis of assumptions about future events that management expects to take place and the actions management expects to take the time the information is prepared (best-estimated assumptions).

Prospective financial information can be in the form of a forecast, a
projection or a combination of both.




A forecast is defined by ISAE 3400 as PFI prepared on the basis of assumptions about future events that management expects to take place and the actions management expects to take the time the information is prepared (best-estimated assumptions).

A projection is defined by ISAE 3400 as PFI prepared on the basis of:

  • Hypothetical assumptions about future events and management actions which are not necessarily expected to take place (e.g. when entities are starting up or restructuring);
  • or mixture of best-estimate and hypothetical assumptions.




ISAE 3400 defines PFI as financial information based on:
-Assumptions about events that may occur in the future; and
-Possible actions by an entity.

1 thought on ““Prospective Financial Information (PFI – MEANING”

  1. Pingback: Importance of the bank letter and the procedures used to obtain confirmation from the bank. - ACCOUNTING FREE RESOURCES

Leave a Comment

Your email address will not be published. Required fields are marked *