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pro forma |
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pro forma See pro forma statement. Pro Forma What Does Pro Forma Mean? A Latin term meaning “for the sake of form.” In the investing world, it is used to describe a method of calculating financial results to emphasize either current or projected figures. Investopedia explains Pro Forma Pro forma financial statements could be designed to reflect a proposed change, such as a merger or acquisition, or to emphasize certain figures when a company issues an earnings announcement to the public. Investors should be careful when reading a company's pro forma financial statements, as the figures may not comply with generally accepted accounting principles (GAAP). In some cases, the pro forma figures may differ greatly from those derived from GAAP. Related Terms: How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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