pro forma

  

Definition

Assumed, forecasted, or informal information presented in advance of the actual or formal information. The common objective of a pro forma document is to give a fair idea of the cash outlay for a shipment or an anticipated occurrence. Pro forma financial statements give an idea of how the actual statement will look if the underlying assumptions hold true. Latin for, according to form or for form's sake.

Business Tips

What Counts Most in a Merger

The language utilized in mergers tends to confuse the issues and encourage irrational actions by managers. For example, dilution is usually carefully calculated on a pro forma basis for both book val ... Read more

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