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Prospective financial information
Types of PFI
1.1 Definitions
Prospective financial information (PFI)
Financial information based on assumptions about events that may
occur in the future and possible actions by an entity. It may be in the
form of a forecast or a projection, or a combination of both.
Forecast
PFI prepared on the basis of assumptions as to future events that
management expects to take place and the actions management
expects to take (best-estimate assumptions).
Projection
PFI prepared on the basis of hypothetical assumptions about future
events and management actions that are not necessarily expected to
take place, or a mixture of best estimate and hypothetical assumptions.
Hypothetical illustration
A depiction of anticipated outcomes based on uncertain future events
and actions.
Target
A desired future outcome aimed for by an organisation.
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