pro forma


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Related to pro forma: Pro Forma Balance Sheet

Pro Forma

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.

pro forma

adjective as a matter of form, by course of conduct, by custom, by habit, by past practice, by trade and usage, by usage, ceremoniously, common, customary, for the sake of appearances, for the sake of form, formally, in due form, in set form, ritualistically, ritually, standard, usual
Associated concepts: pro forma decree, pro forma judggent, pro forma order
References in periodicals archive ?
Nothing in this Statement is intended to preclude an accountant from preparing or assisting in the preparation of pro forma financial information and submitting such pro forma financial information to the client without the issuance of a compilation report, unless the accountant has been engaged to compile such pro forma financial information.
In the wake of prominent accounting scandals involving well-known firms such as Enron and WorldCom, and widespread allegations that firms opportunistically use pro forma numbers to mislead investors, legislators responded with tougher disclosure laws that build on the antifraud provisions of prior legislation, such as the Securities and Exchange Act of 1934.
This side of the debate argues that unregulated pro forma earnings serve only to confuse investors about a company' s actual financial performance.
Clearly, a major criticism of pro forma disclosures to date has been their one-sided nature.
Probably the most controversial approach is the release of pro forma earnings before audited GAAP financial statements are available for comparison, and with little or no reconciling information.