Report on pro forma financial statements
Example of Pro Forma Financial Statement A corporation may want to see the effects of three possible financing options. Therefore, it prepares a projected balance sheet, income statement, and statement of cash flows for each of the three financing options. These projected financial statements are referred to as pro forma financial statements.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. report on pro forma financial statements
Proforma financial statements are also prepared and used by corporate managers and investment banks to assess the operating prospects for their own businesses in the future and to assist in the
A pro forma financial statement is a prediction of future business performance and earnings, rather than a summary of past operations, like the contents of a traditional income statement. In this case, the company would include pro forma financial statements in its annual report. ProForma Financial Statement Example. Below is a very simple example of a pro forma income statement. Assume the company underwent a massive corporate restructuring that was very expensive.report on pro forma financial statements What are Pro Forma Financial Statements? A pro forma financial statement is a report prepared base on estimates, assumptions, or projections. In other words, its not an official GAAP statement issued to investors and creditors to relay information about past company performance.
Financial Reporting Manual Division of Corporation Finance. 1. TOPIC 3: PRO FORMA FINANCIAL INFORMATION. 3100 Circumstances Requiring Pro Forma Presentations. 4600 NonReliance on Previously Issued Financial Statements or Related Audit Report or Completed Interim Review: report on pro forma financial statements Reporting on Pro Forma Financial Information 1519. 20 Appendix C Report on Examination of Pro Forma Financial Information at YearEnd With a Review of Pro Forma Financial Information for a Subsequent Interim Date We have examined the pro forma adjustments reflecting the transaction [or In certain circumstances, a party to a transaction may request that an auditor report on pro forma financial information. Reporting on pro forma financial information is an attestation engagement covered by Statement on Standards for Attestation Engagements, Reporting on Pro Forma Financial Information (AT 401). How can the answer be improved? Financial statements that use the pro forma calculation method are often designed to draw focus to specific figures when a company issues an earnings announcement and makes it available to theRating: 4.72 / Views: 847