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 ?
The Letter of Intent is subject to Cluster Technology receiving audited Financial Statement and pro forma Balance Sheets, currently being prepared by Deloitte & Touche.
The company issued to the shareholders the following pro forma balance sheets at March 27, 1993, and pro forma statements of operations for the quarter ended March 27, 1993, and the fiscal year ended Dec.
The pro forma balance sheets represent the accounts of TBC and P&J on a separate company basis, after certain adjustments have been made to reflect the spin off of P&J.
The May 31, 1992 combined pro forma balance sheets reflect an increase in GTRO assets from $1,249,131 to $2,442,722, with a net equity of $2,210,543.