Pro forma income statement

pro forma income statement - A projected Income Statement. Pro forma in this context means projected.

Companies that report a pro forma income statement or balance sheet usually do so because the events being excluded were unusual so the GAAP financial reports required by law are misleading to investors and potential investors.

A financial plan should also include pro forma income statements and balance sheets projected for up to three years ahead.

Master budget: A comprehensive set of budgets for a given period that usually consists of a pro forma income statement and balance sheet and supporting schedules such as a cash budget and production budget.
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A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows.
Popular terms ...

Pro forma statement
A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows.

Financial forms based on future expectations. Frequently used to refer to a Pro Forma Balance Sheet which is based on assumptions of future hypothetical events. A Projected Income Statement is used more often than a pro forma income statement.

See also: Pro forma, Expense, Pro forma statement, Payment-in-kind, PIK