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Framework · Local File · 6 min
Local File review framework
A structured review sequence for transaction scope, functional analysis, method selection, financial support and open evidence.
01
Start with the transaction, not the document
Confirm the legal entities, period, jurisdictions, transaction category and value before reviewing the narrative. A Local File can be internally consistent and still describe the wrong transaction or period.
Record each open point as a review item. Do not resolve a missing fact with drafting language.
02
Five review blocks
- Scope: entities, period, transaction value and agreement coverage.
- Facts: functions, assets, risks and evidence for material assertions.
- Method: selected method, tested party, PLI and rejected alternatives.
- Financials: tested-party data, segmentation and tie-out to statutory accounts.
- Conclusion: arm's-length result, adjustments, assumptions and unresolved items.
03
Review output
The output should separate confirmed facts, analytical judgments and missing evidence. This gives the senior reviewer a defined basis for challenge and provides a usable starting point for the next annual cycle.