pro forma statement

Pro forma statement

A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows.

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 statement

Anticipated revenues and expenses of a business. Development projects will include a pro forma statement (pro forma for short) for each month or quarter until the project reaches stabilized occupancy,and then a separate pro forma for a representative 12 months at stabilized occupancy.Many developers prepare three pro formas for every project:best case,worst case, and most likely case.

References in periodicals archive ?
GateHouse said in a pro forma statement that it didn't know of any disagreement between Friedman and the company.
According to the company's 2000 pro forma statement, which includes the Nonious acquistion (see IBO 3/31/01), it posted net income of $683,000 on net sales of $77.
The buyer required three years of tax returns, a 12-month pro forma statement, a cost and revenue analysis of the top five customers, an operational study illustrating the labor cost for three different product types, six months' bank statements, and a break-even analysis," he explains.
The adjusted pro forma statement of operations assumes that the Transaction occurred at the beginning of the period presented.
If you are a shareholder we recommend you approach the statements with some 'professional scepticism', asking questions like: 'has the company only started preparing pro forma statements when they have a poor profit or even a loss?
Respondents did perceive some value in pro forma statements in terms of providing relevant and timely information and in having predictive value and feedback value.
Pro forma statements ("If most expenses are ignored or capitalized as customer database development, operations will appear marginally profitable, so buy our stock").
The FASB also plans a project on reporting financial performance, though Lucas said he saw little relationship between the project and the controversy over pro forma statements.
However, pro forma statements are not audited and may not even be reconcilable with financial statements filed with the commission.
Prior years' financial statements are generally not altered, but pro forma statements are issued to show how the statements would have looked if the new method had been used.
The pro forma statements in the report were priced at a $40 oil price, and as such the company will be revising the numbers to reflect current oil prices.
Consider the remarks of SEC Chair Harvey Pitt: "I would say in cases where pro forma statements change a loss into a profit, my view is there is an almost 100% chance that a company that is capable of doing that without appropriate disclosure will have defrauded or confused its investors.