Pro Forma

Last Updated: Jun 7, 2019

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A Pro Forma financial statement is one based on certain assumptions and projections. They are often used when a company is considering making a major change, such as a new loan or an acquisition. The pro forma statements will show what the company will look like from a financial perspective given the expected results of the major change. Pro forma is not in line with US GAAP accounting, so it is important to understand if you are analyzing actual financials or pro forma financials.