Pro Forma

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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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Once you've completed the Pro Forma Financial Statements, you may want to create a copy of the file to serve as a basic template.
Limitations are imposed by the residual nature of goodwill, the inherent uncertainty of projecting pro forma financial statements, and the lack of precision in estimating discount rates and required rates of return.
Since the supervisors can't change the equations or any other estimates, the carefully prepared pro forma financial statements will show the results of their changes.
The CPA should be sure to make a list for the insurance adjuster of all the assumptions he or she made in preparing the pro forma financial statements, along with the justification for those adjustments.
* Pro forma financial statements. For service- or production-oriented companies.