August 28, 2008
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What are pro forma financial statements?
A pro forma financial statement is one based on certain assumptions and projections.
For example, a corporation might want to see the effects of three different financing options. Therefore, it prepares projected balance sheets, income statements, and statements of cash flows. These projected financial statements are referred to as pro forma financial statements.
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13 Responses to “What are pro forma financial statements?”
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Now , I am lecturing for Program BBA , finance and accounting i need some matterial for instructuring the student
I am prepare for the test
i think it means .In accounting, pro forma earnings are those earnings of companies in addition to actual earnings calculated under the Generally Accepted Accounting Principles in their quarterly and yearly financial reports.The pro forma accounting is a statement of the company’s financial activities while excluding “unusual and nonrecurring transactions” when stating how much money the company actually made. Expenses often excluded from pro forma results include company restructuring costs, a decline in the value of the company’s investments, or other accounting charges, such as adjusting the current balance sheet to fix faulty accounting practices in previous years. or
A financial statement constructed from projected amounts. A firm might construct a pro forma income statement based on projected revenues and costs for the following year. Likewise, a firm may wish to develop a set of pro forma statements to determine the effect of a projected stock buyback.
i want to know how to make projected balance sheet?
Thank you I need some clarification on fund accounting.
I understood it, but one doubt ….i.e. is this pro forma is made only of Projected data(future data assumptions) or it is based on actual financial data also.
praforma is done for projected data only.
It can also be used for comparing the projections & actuals.
I will like for you to please made some clarity on proforma financial statement.
my name is Ali hirsi iam student in simad somali institute of management and development in accounting department i have good mark. although iam very interesting to help me such questions and answer and i will thanks you for pervious acccepting
Pro forma financial statements is used by companies for decision making purposes. It will reflect projected income or projected expenses to which options they would choose, given the options
Pro forma financial statement is made for future forecase for taking decision to run the business.
hi,i would like to get relevant information about company accounts.thx
Hi my Nickname is Akkash. I am the student of B.Com from Allama Iqbal Open University situated in Islamabad. Please I need some Help about Accountings, because i am a Private student. You know As appear a Private student it is very diffcult to understand the accounting terms. Especially Specimens like Income Statement, Balance Sheet, Cash and Receipt Payments etc.
in the end can You help me in the following above mentions items & others? Please