Forecast5 was founded on the concept of providing schools, cities, and county governments the tools that they need to build meaningful and accurate five-year financial forecasts
," stated Mike English, CEO and president of Forecast5.
Nonprofit organizations also need financial forecasts
and projections to ensure their success and continued existence.
A financial forecast
represents what management expects to happen.
Because users expect financial forecasts
to present the responsible party's best estimate,' the term reasonably objective basis was included in the Guide to communicate to responsible parties a measure of the quality of information necessary to present a forecast.
72, the ASB expanded the matters CPAs are permitted to address in comfort letters to include financial forecasts
and compliance of certain information (such as selected financial data, supplementary financial information, executive compensation and ratios of earnings to fixed charges) with SEC regulation S-K.
PKF's report also stressed the uncertainty of the financial forecasts
in the memorandums, the difficulty of projecting profitability in a venture lacking sufficient operating history and the potentially negative effect of forces beyond the managing partner's control--such as changes in the tax law or government regulations.
Since there is no guidance in the SSARS literature about the issuance of draft financial statements, ARSC will develop an interpretation that will parallel the guidance in footnote 4 of the Guide for Prospective Financial Statements, which was prepared by the AICPA financial forecasts
and projections task force and issued in 1986.