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Home > QFINANCE Dictionary > Definition of pro-forma financial statement

Definition of

pro-forma financial statement

Accounting

statement of projected financial position after planned transaction a projection showing a business's likely financial statements after the completion of a planned transaction

pro-forma financial statement - Related Articles

  • Quantifying Corporate Financial Risk

    Best Practice

    Once all the drivers of the income statement have been modeled, they are compiled to the income statement in the same way that a pro-forma income statement would normally be generated. For example, suppose a refinery in Brazil buys crude oil in dollars, sells products in reais, shuts down production when it is not profitable to produce, and runs the risk of operational failures according to some statistical model
    By David Shimko

  • Managing Capital Budgets for Small and Medium-Sized Companies

    Best Practice

    Stress testing is a best practice for risk assessment. Identify possible problems, such as a recession or loss of a major customer. Prepare pro forma financial statements for the company in these unfortunate scenarios, with and without the proposed capital investment. Although income is important
    By Neil Seitz

  • Using and Understanding Financial Ratios for Analysis

    Checklists

    needs to look at more than easily attainable numbers such as sales, profits, and total assets. Ratio analysis needs to be used to read between the lines of financial statements and make sense of the numbers. This will allow the owner to identify and quantify the company’s strengths and weaknesses

  • Understanding the Requirements for Preparing IFRS Financial Statements

    Best Practice

    and equipment, financial instruments, mineral resources, income taxes, and so on. At this moment financial statements prepared under IFRS have to comply with 37 standards and 28 interpretations. Many topics have not yet been covered, so the IASB is continuously improving the current standards and publishing new
    By Véronique Weets

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Definitions of ’pro-forma financial statement’ and meaning of ’pro-forma financial statement’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’pro-forma financial statement’ and other financial terms with our online QFINANCE Financial Dictionary.

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