APES 345: Prospective Financial Information Reports

Determine Whether APES 345 Applies

Identify the member in public practice, the predictive financial information, the proposed report and the intended document before applying APES 345. The APESB corporate finance guidance identifies the reporting standard and its neighbouring professional roles.

“Public Document” has a defined scope. It covers disclosure documents, product disclosure statements and specified documents for schemes of arrangement, takeovers or compulsory acquisitions. A forecast posted publicly does not qualify solely because readers can access it.

Record the classification with a short description of the actual instruction:

• Compilation alone follows APES 315.
• An internal cash forecast needs its own applicable framework.
• A valuation requires a valuation instruction and framework.
• Committee participation raises the separate role addressed by APES 350.

Use the edition applicable to the engagement’s commencement and any permitted early adoption. The 2025 APES 345 standard states that boundary in paragraph 1.2.

Confirm the Reporting Instruction and Responsibilities

Document the reporting instruction before collecting evidence for an undefined conclusion. Name the responsible party preparing the information and the member responsible for the report. Specify the intended users, forecast period, reporting scope and proposed use in the public document.

The APES 110 Code supplies the ethical framework. Assess conflicts across the firm’s services and relationships, including financial interests and work for other parties. Record the threat assessment and the response. Client consent does not automatically resolve every conflict.

Decide whether the engagement requires independence or describes itself as independent. Separately determine whether it is an assurance engagement. The AUASB’s ASAE 3450 addresses assurance reporting involving corporate fundraisings and prospective financial information. It has a broader reach than APES 345’s defined Public Document scope.

Assign specialist work explicitly. Establish the specialist’s competence and objectivity, agreed work and how the member will assess its adequacy. Identify required report disclosures and obtain necessary consent to disclosure.

Connect the Prospective Information to Evidence

Build a working file that connects each material forecast assumption to its supporting information and the member’s conclusion. Keep historical figures separate from future assumptions. Record contrary evidence and missing support beside the affected assumption.

Consider a fictional forecast assuming a $120,000 customer receipt in the next quarter. Earlier statements show that the customer paid $80,000 in the preceding quarter. That earlier payment supports the historical receipt. The future amount also needs support for the expected sales and collection timing, such as orders, contractual terms and evidence about outstanding disputes.

An incorrect assessment treats the earlier deposit as proof of the $120,000 forecast. A supported assessment identifies what changed and tests whether the proposed amount and timing follow from the evidence.

For a corporate restructuring, distinguish evidence supporting the reporting conclusion from management’s decision about funding and viability. Keep scenario calculations reproducible so a changed receipt assumption can be followed through the forecast.

Prepare the Report and Governance Communications

Match the report to the agreed engagement and the framework governing its conclusion. APES 345 paragraphs 7 to 9 address documentation, reporting and governance communications. Preserve the procedures performed and sources used.

For assurance work, ASAE 3450’s reporting requirements address the conclusion and report content. Identify the information reported on, its purpose and period. Describe the responsible party’s role and the practitioner’s responsibilities. Use the prescribed conclusion and applicable limitations for the actual engagement.

Read the proposed public document beside the report. Check that surrounding statements preserve the report’s scope and that assumptions are disclosed clearly. Communicate material matters promptly to those charged with governance, including unresolved threats to objectivity or independence. Keep the communication and response on file.

Resolve Changes Before the Report is Used

Reassess the engagement when assumptions or facts change, another service creates competing responsibilities or litigation affects the relationship. Confirm who will assess each change and who can authorise the report’s inclusion.

Review remuneration under APES 110 section 330. APES 345 prohibits contingent fees where the reporting engagement requires or claims independence. Assess actual or probable litigation under the applicable client-continuance requirements.

Before release, the responsible member must be able to trace the scope decision through the evidence to the issued report and governance record. Identify the version of the public document that contains the report. If materially false or misleading information emerges after issue, follow APES 345’s corrective communication and escalation requirements instead of leaving the earlier document in circulation unaddressed.