Assumptions are future situations beyond the control of the project,. [provide a list of contractual or task level assumptions and/or constraints that are preconditions to preparation of the frd. Use the following priority table. An frd or functional requirements document serves as a contract for formal statement, between the business stakeholders and the technology team, on an application’s functional requirements. A functional specification document (fsd), also known as a functional requirements document (frd), is considered by many project management and software.