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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.
Business requirements are the critical activities of an enterprise that must be performed to meet the organizational objective(s) while remaining solution independent. A business requirements document (BRD) details the business solution for a project including the documentation of customer needs and expectations. If an initiative intends to modify existing (or introduce new) hardware/software, a new BRD should be created.