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. Assumptions are future situations beyond the control of the project,. They communicate what problem needs. [provide a list of contractual or task level assumptions and/or constraints that are preconditions to preparation of the frd. A functional requirements document (frd)—also known as a functional requirements specification, functional specification, or functional specification document—is a more.