Business版 - Re: what is "pro forma net income"? Also please explain the difference |
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k***a
发帖数: 87 | 1 Pro forma means that it's a set of numbers/figures calculated based on some
assumptions. The assumptions can vary from recent proposed acquisitions to
proposed restructuring of the business. "Pro forma" financial results aren't
prepared using GAAP, and they may not convey a true and accurate picture of a
company's financial well-being. They often highlight only positive
information. And because "pro forma" information doesn't have to follow
established accounting rules, it can be very difficul | l*o
发帖数: 36 | 2 Your description sounds more like a projective financial statement (PFS) to me.
A pfs presents, to the best of the responsible party's knowledge and belief, a
company's expected financial position and results of operation etc given one or
more hypthetical assumptions like proposed business combination or disposal
of segment. A pro forma financial statement shows what the prior-period
financial reports would have been had a transaction happened at an earlier
date. It basically re-state prior peri
【在 k***a 的大作中提到】
: Pro forma means that it's a set of numbers/figures calculated based on some
: assumptions. The assumptions can vary from recent proposed acquisitions to
: proposed restructuring of the business. "Pro forma" financial results aren't
: prepared using GAAP, and they may not convey a true and accurate picture of a
: company's financial well-being. They often highlight only positive
: information. And because "pro forma" information doesn't have to follow
: established accounting rules, it can be very difficul
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