pro forma financial statement

(redirected from Pro Forma Balance Sheets)

Pro Forma Financial Statement

A financial statement that a company prepares to consider the effects of a potential activity. For example, if a company is considering acquiring another, it may prepare a pro forma financial statement to estimate what effect the acquisition would have on its own financial circumstances. A pro forma financial statement can be part of the risk analysis of a situation. See also: Due diligence.

pro forma financial statement

A financial statement constructed from projected amounts. A firm might construct a pro forma income statement based on projected revenues and costs for the following year. Likewise, a firm may wish to develop a set of pro forma statements to determine the effect of a projected stock buyback.
References in periodicals archive ?
Unaudited Pro Forma Balance Sheets at October 25, 1997 - the unaudited pro forma balance sheets give effect to the self-tender, the spin-offs of the four divisions, the equity investment by CD&R and business combinations completed subsequent to October 25, 1997 as if all such transactions had occurred on October 25, 1997.
The Company also released three years of unaudited, historical pro forma income statement information (for the April 1995, 1996, and 1997 fiscal years) and a pro forma balance sheet (as of October 25, 1997) for each of the five companies: the restructured USOP, Corporate Travel, Education, Print Management, and Technology Solutions.