ACCOUNTING GLOSSARY
Compilation
Compiled Financial Statements
Financial statements assembled by an accountant without assurance on the information.
What does Compilation mean?
Financial statements assembled by an accountant without assurance on the information. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Compilation in context
A small business supplies CPA-compiled statements with its loan package.
Why it matters in financing
Compilation can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.