pro forma financial statement

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A pro-forma financial statement of the merged entity showed it recorded Dh2.9 billion in net profit for the first quarter of 2017, up 12.4 per cent year-on-year.
In the next few issues, I'll look at how to identify all the benefits of a proposed flow process and demonstrate how to put together a pro-forma financial statement that will show your senior management the Total Impact their investment will have on the company's future.
According to a statement the financial results are based on six-month pro-forma financial statements for the combined entity, following the merger between ADCB and Union National Bank, UNB, and the subsequent acquisition of Al Hilal Bank on 1st May 2019.
Pointer expects that this transaction, based on 30 September 2013 pro-forma financial statements, will improve its basic EPS by over 10% to USD0.51 from USD0.46.
This team will lead the compilation of private company financial reporting basics, the preparation of pro-forma financial statements and the private company financial reporting training in your firm.
Meet with your bankers early in the transition process and share the differences between the pro-forma financial statements and your statements.
Be sure to include other contracts in your analysis if they have terms or conditions potentially affected by the pro-forma financial statements.
These forward-looking documents are known as pro-forma financial statements. Pro-forma is a Latin term meaning "the before form," which indicates that these are statements prepared using a set of assumptions, before the actual financials are known.