Pro forma Accounting
Subject: Accounting | Topics:

Pro forma accounting may be designed to indicate a proposed adjust, such as merger or purchase, or to highlight certain figures each time a company issues the earnings announcement to the public. Investors should be careful when examining a company’s pro-forma fiscal statements, as the figures may not comply with generally accepted accounting concepts. In some situations, the pro-forma figures may vary greatly from the those derived from GAAP.

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