pro forma

(adjective)

For the sake of form only.

Related Terms

Examples of pro forma in the following topics:

  • Pro Forma Income Statement

    • A pro forma income statement is planned and prepared in advance to of a transaction to project the future status of the company.
    • Consequently, pro forma statements summarize the projected future status of a company, based on the current financial statements.
    • Similarly, when a new corporation is envisioned, its founders will prepare pro forma financial statements for the information of prospective investors.
    • Pro forma figures should be clearly labeled as such and the reason for any deviation from reported past figures clearly explained.
    • A pro forma Income statement could be planned and prepared in advance, which includes the items below:

  • Pro Forma Balance Sheet

    • A pro forma balance sheet summarizes the projected future status of a company after a planned transaction, based on the current financial statements.
    • Consequently, pro forma statements summarize the projected future status of a company, based on the current financial statements.
    • If applicable to the business, summary values for the following items should be included in the pro forma balance sheet :
    • Similarly, when a new corporation is envisioned, its founders will prepare pro forma financial statements for the information of prospective investors.
    • Pro forma figures should be clearly labeled as such and the reason for any deviation from reported past figures clearly explained.

  • The Forecast Budget

    • The pro-forma balance sheet method looks straight at the projected book cash account; if all the other balance sheet accounts have been correctly forecast, cash will be correct, too.
    • The adjusted net income and pro-forma balance sheet methods are best suited for medium-term and long-term forecasting horizons.

  • Understanding Future Stock Value

    • Numbers are usually reported as a GAAP EPS number (which means it is computed using mutually agreed upon accounting rules) and a Pro Forma EPS figure (income is adjusted to exclude any one time items as well as some non-cash items like amortization of goodwill or stock option expenses).
    • To measure the ROA, take the pro forma net income divided by the total assets.

  • Operations Management

    • Many companies prepare a 5-year pro-forma to assist in their operation planning.
    • The pro forma uses information from past and current financial statements in an effort to predict future events such as sales, and capital investments.

  • The Business Plan

    • Elements of a Business Plan: Cover sheet, Executive summary (statement of the business purpose), Table of contents, Body of the document, Business Description of business, Marketing Competition, Operating procedures, Personnel Business insurance, Financial data, Loan applications, Capital equipment and supply list, Balance sheet Break-even analysis, Profit and loss statements, Three-year summary, Detail by month -- first year, Detail by quarters -- second and third year, Assumptions upon which projections were based, Pro-forma cash flow, Supporting documents, Tax returns of principals (partners in the business) for last three years, Personal financial statements (all banks have these forms), Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses), Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.

  • Sarbanes–Oxley Act of 2002

    • It describes enhanced reporting requirements for financial transactions, including off-balance-sheet transactions, pro-forma figures and stock transactions of corporate officers.

  • Overview of Strategic Planning Tools

    • It is useful to construct pro forma financial statements, which illustrate expected costs and revenues.

  • Sarbanes–Oxley Act of 2002

    • Title IV describes enhanced reporting requirements for financial transactions, including off-balance-sheet transactions, pro-forma figures and stock transactions of corporate officers.

  • Pro-French Indochina