IAASB Proposes New Standard to Strengthen Reporting on Pro Forma Financial Information in Prospectuses

The International Auditing and Assurance Standards Board (IAASB) released a proposed new assurance standard that addresses the process of compiling pro forma financial information included in prospectuses. Recognizing the increasingly integrated nature of global capital markets and the importance of pro forma financial information in the public’s investment decisions, the newly proposed standard is designed to enhance public confidence in how such financial information is produced.