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The functional requirements document (FRD) is a formal statement of an applicationâs functional requirements. It serves the same purpose as a contract. The developers agree to provide the capabilities specified. The client agrees to find the product satisfactory if it provides the capabilities specified in the FRD.
For purposes of contrasting the Business Requirement Document (BRD) and the Functional Specification Document (FSD), the description of the BRD that follows is written in terms of preparing a BRD for a system. The exact scope of a BRD and FSD vary from company to company.