pro forma


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.
Related to pro forma: Pro Forma Balance Sheet

Pro forma

A financial projection based on assumptions. Also, refers to a statement of income and balance sheets that exclude non-recurring items.

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

prescribing a set form or procedure. For instance, a pro forma invoice may be sent to a customer in advance of a transaction to facilitate paperwork, or a pro forma projected SOURCES AND USES OF FUNDS STATEMENT may be constructed to show the bank manager the anticipated future financial situation as a basis for negotiating a short-term LOAN.

pro forma

See pro forma statement.

References in periodicals archive ?
CONDITIONS FOR COMPILING PRO FORMA FINANCIAL INFORMATION
Sender (2002) notes that, just six weeks before it sought bankruptcy protection, Enron's pro forma earnings figure excluded $1.
Accounting researchers Lawrence Brown and Kumar Sivakumar have found evidence suggesting that pro forma results can provide higher-quality earnings measures (i.
Extracting that information in a pro forma disclosure can reduce the likelihood that an investor will consider that onetime event in predicting future earnings.
Considerable variance exists in the relative prominence given to pro forma versus GAAP earnings among companies that state both in their press releases.