FINANCIAL INFORMATION SERVICES
Principles of service performance
A contract for the compilation of financial information may require FAT to assist in the preparation and presentation of the entity’s financial information. The value of performing a general service contract under this Standard to users of financial information is the result of applying FAT’s accounting and financial reporting expertise, compliance with professional standards, including relevant ethical standards and regulations, and specific information on the nature and extent of practitioner involvement with aggregated financial information. well suited.
Financial information that is subject to aggregation services may be required to be aggregated for a variety of purposes, including:
(a) Comply with the requirements for the preparation and presentation of periodic financial statements, which are required by law and relevant regulations; or
(b) For purposes not related to the preparation and presentation of the financial statements required by applicable laws and regulations, for example:
(1) For the Board of Directors or those charged with governance, prepared on a basis that is fit for the specific purpose of the Board of Directors or those charged with governance (for example, preparing financial information for internal use);
(2) Prepare periodic financial statements for third parties under a contract or other arrangement (for example, financial statements provided to the sponsoring organization at the request of the sponsor);
(3) To conduct transactions, such as those involving a change in business ownership or a change in financial structure (for example, a merger or acquisition).
Various financial reporting frameworks can be used for the preparation and presentation of financial information, ranging from accounting basics for small and medium-sized enterprises to reporting standards and standards. financial regulations. The financial reporting framework used by management in the preparation and presentation of financial information will depend on the characteristics of the entity and the intended users of the financial information.
General report of financial information
Financial information aggregation service reports are issued by FAT for financial information aggregation service contracts at the request of customers.
An important purpose of the FAT consolidated services report is to clearly state the nature of the aggregate service, and the FAT roles and responsibilities in the service contract. The FAT report is not a means of expressing an opinion or drawing conclusions about financial information in any way.
The report on financial information consolidation services is issued by FAT in written form, and includes the following main contents:
- FAT has compiled financial information based on information and documents provided by the Board of Directors of the service user;
- Responsibilities of management or user management (to the extent appropriate) for the aggregate service and for financial information;
- Determine the financial reporting framework to be applied. If a special purpose financial reporting framework applies, a description or reference to that particular purpose financial reporting framework will be provided in the economic information;
- Identify the financial information, including the title of each element of the financial information and the date of the financial information or the period to which the financial information is related;
- Outlining FAT’s responsibilities in compiling financial information, the aggregation services are performed in compliance with this Standard and FAT has complied with relevant ethical regulations;
- Description of the general service’s compliance with applicable Vietnamese Standards;
- Explanations about:
+ Since the aggregation is not an assurance service, FAT is not required to confirm the accuracy or completeness of the information provided by management for the purposes of aggregation;
+ Accordingly, FAT does not express an audit opinion, review or conclusion on whether the financial information has been prepared in accordance with the applicable financial reporting framework;
- If financial information has been prepared under a special purpose financial reporting framework, the explanatory paragraph includes:
+ A description of the purposes for which the financial information is prepared, and the intended users, if necessary, or a reference to the disclosures in the financial information that present the information;
+ The paragraph cautions the reader that the financial information has been prepared under a special purpose financial reporting framework and, therefore, may not be suitable for other purposes. ;