Statements of Position



Download Full Text (5.1 MB)


The proposed guide discusses procedures that an accountant should apply in a review of a financial forecast and provides guidance on the preparation of the accountant's report on the forecast. A financial forecast is defined in the proposed guide as an estimate of the most probable financial position of an entity, the results of its operations and changes in its financial position for one or more future periods. The "most probable" qualification means that the assumptions used have been evaluated by management and the forecast is based on management's judgment of the most likely set of conditions and its most likely course of action. The accountant would report on whether he believes that the assumptions used as a basis for management's forecast are reasonable. Nothing in the proposed guide precludes an accountant from accepting an engagement to perform other services related to forecasts or projections, but guidance for such other types of engagements is not provided. For example, the proposed guide does not apply to the preparation of a financial projection. (A projection is an estimate of financial results based on assumptions that are not necessarily the most likely. It is developed as responses to "what if?" questions.) Also, the guide does not apply to the development of information relative, for example, to demand for hospital services.

Publication Date


Relational Format



Finance -- Forecasting -- Accounting -- Standards -- United States; Business forecasting


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

American Institute of Certified Public Accountants. Forecasts and Projections Task Force;Review of a financial forecast; Exposure draft (American Institute of Certified Public Accountants), 1979, Nov. 23



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.