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Pro Forma |
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As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma, in an appealable decree or judgment, usually means that the decision was rendered not on a conviction that it was right, but merely to facilitate further proceedings. pro forma 1) prep. Latin for "as a matter of form," the phrase refers to court rulings merely intended to facilitate the legal process (to move matters along). 2) n. an accountant's proposed financial statement for a business based on the assumption that certain events occurred, such as a 20% increase in annual sales or 6% inflation. |
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By definition, presentations of pro forma financial information are not financial statements. Pro forma earnings can be analytically useful in describing company performance. For comparison purposes, the Company's advertising revenues are presented on a pro forma basis, which assumes that all properties currently owned by Journal Register Company were owned in both the current and prior year periods. |
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Pro Forma