For the purposes of this Standard on Assurance Engagements, the following terms have the meanings attributed below:

Applicable criteria – The criteria used by the responsible party when compiling the pro forma financial information. Criteria may be established by applicable law or regulation or in the absence of established criteria, be developed by the responsible party. (Ref: Para. A7-A9)

Pro forma adjustments – In relation to unadjusted financial information, these include:

1. Adjustments to unadjusted financial information that illustrate the impact of a significant event(s) or transaction(s) (“events” or “transactions”) as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration; and
2. Adjustments to unadjusted financial information that are necessary for the pro forma financial information to be compiled on a basis consistent with the applicable financial reporting framework of the reporting entity (“entity”) and its accounting policies under that framework. (Ref: Para. A15-A16)

Pro forma adjustments include the relevant financial information of a business that has been, or is to be, acquired (“acquiree”), or a business that has been, or is to be, divested (“divestee”), to the extent that such information is used in compiling the pro forma financial information (“acquiree or divestee financial information”).

[Deleted by the AUASB. Refer Aus 11.1.]

Prospectus – A document issued pursuant to applicable law or regulation relating to the entity’s securities on which it is intended that a third party should make an investment decision.

Published financial information – Financial information of the entity or of an acquiree or a divestee that is made available publicly.

[Deleted by the AUASB. Refer Aus 11.3.]

Pro forma financial information – Historical financial information shown together with adjustments to illustrate the impact of an event(s) or transaction(s) on unadjusted financial information as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration. In this ASAE, it is assumed that pro forma financial information is presented in columnar format consisting of (a) the unadjusted historical financial information; (b) the pro forma adjustments; and (c) the resulting pro forma column. (Ref: Para. A2)

Public document – a disclosure document, product disclosure statement or other documentation provided to shareholders, unit holders, or holders of a relevant interest in an entity (or which is provided to management of any entity) in relation to a scheme of arrangement under the Part 5.1 of the Corporations Act 2001, or a takeover or compulsory acquisition under Chapter 6 of the Corporations Act 2001.

Unadjusted financial information – Historical financial information of the entity to which pro forma adjustments are applied by the responsible party. (Ref: Para. A4-A5)