Fantastic Define Pro Forma Statement

Pro forma statement Anticipated revenues and expenses of a business.

Define pro forma statement. They can look forward or backward revealing financial information that standard financial statements simply cannot provide. Essentially pro forma financial statements are financial reports based on hypothetical scenarios that utilize assumptions or financial projections. English Language Learners Definition of pro forma.

Pro-forma earnings describe a financial statement that has hypothetical amounts or estimates built into the data to give a picture of a companys profits if certain nonrecurring items were. Pro Forma Financial Statement A financial statement that a company prepares to consider the effects of a potential activity. A pro forma statement is a financial statement prepared as a projection of the future.

Proforma financial statements are the financial statements prepared by a company based on certain assumptions and on the basis of transactions that might have taken place in the past or are likely to occur in the future. Its a tool that business owners decision-makers stakeholders investors creditors and others use to examine hypothetical conditions. Example of Pro Forma Financial Statement A corporation may want to see the effects of three possible financing options.

On a pro forma income statement revenue is calculated based on events that could increase or decrease sales. A Pro Forma Statement Is an Important Tool for Planning Future Operations For my purposes here a pro forma income statement is similar to an historical income statement except it projects the future rather than tracks the past. Done or existing as something that is usual or required but that has little true meaning or importance See the full definition for pro.

Pro Forma Income Statement Income statements indicate the profitability of a business. Pro forma statements are an integral part of business planning and control. It usually takes into account historic relationships anticipated changes in these.

This is done by taking the difference between revenue or sales and expenses or the costs involved in doing business. Theyre a way for you to test out situations you think may happen in the future. Pro forma financial statements Definition.