Glossary of economics research
Results of search for pro forma follow:
pro forma:
describes a presentation of data, typically financial statements, where the
data reflect the world on an 'as if' basis. That is, as if the state of the
world were different from that which is in fact the case.
For example, a pro forma balance sheet might show the balance sheet as if a
debt issue under consideration had already been issued. A pro forma income
statement might report the transactions of a group on the basis that a
subsidiary acquired partway through the reporting period had been a part of
the group for the whole period. This latter approach is often adopted in
order to ensure comparability between financial statements of the year of
acquisition with those of subsequent years.
Source: Stephen Brown (stephenb@nwu.edu at the time) 7/24/2000, by email
Contexts: accounting; finance; business
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