An Investigating Accountant’s Report (IAR) involves an independent review of a company’s historical and/or projected financial information and any assumptions and material accounting policies adopted applicable to the information.

The purpose of an IAR is to provide a negative assurance opinion regarding whether a company’s historical and pro forma financial information and any forecast financial information is:

  • Properly prepared on the basis of the disclosed assumptions
  • Prepared on a reasonable basis
  • Presented fairly in accordance with relevant recognition and measurement principles, other mandatory reporting requirements and disclosed accounting policies adopted.

An IAR is typically required to support the inclusion of financial information in a prospectus or other disclosure statement.  Reports of a nature similar to an IAR may also be required for other purposes, including to support the preparation of pro forma accounts or  projections in cases of disputed transactions or in situations involving the preparation of “but for” scenarios in economic loss cases.

While the review of financial information is at the centre of the report, a comprehensive IAR will also take into consideration other relevant factors, such as the existence of normalisation adjustments to historical results (for example as a result of discontinued operations) or the impact that a transaction yet to occur would have had on past results had it taken place in the past.

Our corporate advisory team has extensive experience in assisting companies through capital raisings and other situations that might require the preparation of an IAR.
Our professionals combine that experience with in-depth knowledge of financial reporting to provide a comprehensive service in connection with IARs including:

  • Assisting with the preparation of the financial information disclosed in a prospectus or other disclosure statements
  • Reviewing the financial information disclosed in a prospectus or other disclosure statement and preparing an IAR in relation to the historical and pro-forma historical financial information
  • Reviewing forecasts or other prospective financial information disclosed in a prospectus or other disclosure statement and preparing an IAR thereon
  • Participating in the due diligence committee in connection with capital raisings Where required, in addition to providing the IAR, we document the details of our review in formal reports that are comprehensive yet clear and concise, ensuring that they enable the user to fully understand the scope of the review undertaken in forming our opinion.

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