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Definitions H

Historical financial information to Hypothetical assumptions

Term

Definition

Historical financial information information expressed in financial terms in relation to a particular entity, derived primarily from that entity’s accounting system, about economic events occurring in past time periods or about economic conditions or circumstances at points in time in the past.
Historical financial information (in the context of ASAE 3450)  information expressed in financial terms in relation to a particular entity, which is derived primarily from that entity’s accounting system and relates to events occurring in past time periods or about conditions or circumstances at points in time in the past.
Historical financial information, other than a financial report includes:

(a) Specific components, elements, accounts or items of a financial report, such as:

(i) A single financial statement, for example, an income statement or balance sheet.

(ii) Accounts receivable.

(iii) Impairment of asset accounts.

(iv) Inventory.

(v) The liability for accrued benefits of a defined benefits plan.

(vi) The recorded value of identified intangible assets.

(vii) Pro-forma historical financial information and adjustments.

(viii) The liability for “incurred but not reported” claims in an insurance portfolio, including related explanatory notes.

(b) Other information derived from financial records, such as:

(i) A schedule of externally managed assets and income of a private pension plan, including related explanatory notes.

(ii) A schedule of net tangible assets, including related explanatory notes.

(iii) A schedule of disbursements in relation to a leased property, including related explanatory notes.

(iv) A schedule of profit participation or employee bonuses, including related explanatory notes.

(c) Financial statements prepared in accordance with a financial reporting framework that is not designed to achieve fair presentation, such as condensed financial statements and an entity’s internal management accounts.
Hypothetical assumptions  assumptions made by the responsible party in preparing prospective financial information in the form of a projection about future events and management actions which may not necessarily be expected to take place or that may be expected to take place, and may not be based on reasonable grounds.