To test, we will enter the data from the Excel example and make sure that we have a place to enter every data element needed to complete the budget and pro forma statements
. Next month, we will start the challenging part of creating all the processes: queries, forms, reports, and macros to make our system.
When fair values exceed costs (by a material amount), information related to increases in the value of assets could be provided in footnotes or pro forma statements
. That is, the reliability and relevance of historical cost financial reports could be enhanced by providing fair value information through footnote disclosures or pro forma statements
Students are expected to conduct a detailed analysis of market characteristics, anticipated market share estimates, per unit costs, operating details down to employees and rates per hour, utilities, etc, all displayed in impressive, detailed Excel spreadsheets of monthly, quarterly and annual financial pro forma statements
. It is a formidable task and one in which students learn a great deal.
* The use of pro forma statements
in annual report footnotes to provide "as if" information on acquisitions
* 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.
Every day, in financial centers from Wall Street to Main Street, lenders spend countless hours pouring over complex calculations and detailed pro forma statements
to determine the risks associated with multifamily transactions.
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.
In Part 5 of the Excel Budgeting article (June 2010), Jason Porter and Teresa Stephenson discuss how to process the budget data to create pro forma statements
, including the Income Statement, Balance Sheet, and Statement of Cash Flows.
Analysts routinely project companies' financial statements (called pro forma statements
) in order to provide a basis for an estimate of value.
Recently you expressed your view on pro forma statements
("Let's Be Balanced With Pro Forma Earnings," From the President, June 2001).