pro forma

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Related to Pro-forma amount: Proforma Invoice, Pro forma financial statements, Pro Forma Balance Sheet

Pro forma

A financial projection based on assumptions. Also, refers to a statement of income and balance sheets that exclude non-recurring items.

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

prescribing a set form or procedure. For instance, a pro forma invoice may be sent to a customer in advance of a transaction to facilitate paperwork, or a pro forma projected SOURCES AND USES OF FUNDS STATEMENT may be constructed to show the bank manager the anticipated future financial situation as a basis for negotiating a short-term LOAN.

pro forma

See pro forma statement.