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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 often listed in a Business Requirements Document or BRD. The emphasis in a BRD is on what is required, rather than on how to achieve it, which is usually delegated to a Systems Requirements Specification or Document (SRS or SRD) or other variation such as a Functional Specification Document.