pro forma financial statement

(redirected from Pro Forma Income Statements)

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 ?
We randomly assigned subjects to one of two groups (standard or nonstandard pro forma content) and then presented them with a company description and an earnings announcement containing the pro forma income statements and a reconciliation of pro forma income to GAAP earnings.
Using this information, pro forma income statements are provided for major product categories in selected global regions.
To construct pro forma income statements and free cash flows for business valuation purposes.
Pro forma income statements excluding financial results for Covance's biomanufacturing business for the full year 2000 will be available post closing of the transaction.
The bulletin states that the registration statement should include pro forma income statements that reflect the impact of terminated or revised cost sharing agreements and other significant changes.