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.

  • 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.

  • 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.

  • 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.

  • 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.

  • Pros and Cons of a Partnership

  • Pros and Cons of Sole Proprietorship

  • Pros and Cons of a Corporation

  • Treasury Stock

    • When a corporation has additional authorized shares of stock that are to be issued after the date of original issue, in most states the preemptive right requires offering these additional shares first to existing stockholders on a pro rata basis.
    • However, firms may reissue treasury stock without violating the preemptive right provisions of state laws; that is, treasury stock does not have to be offered to current stockholders on a pro rata basis.