Pro forma financial statement example. Balance sheet all inputs are marked with the symbol. The pro forma accounting is a statement of the companys financial activities while excluding unusual and nonrecurring transactions when stating how much money the company actually madeexpenses often excluded from pro forma results include company restructuring costs a decline in the value of the companys investments or other accounting charges such as adjusting the current. A financial plan contains short and long term financial projections for a small or large business.
Accounting budgeting and financial management budgeting and financial accounting. Sec financial reporting series pro forma financial information a guide for applying article 11 of regulation s x september 2015. Financial planning and forecasting 11 pro forma financial statements financial statements projections and forecasting are very common in corporate financial analysis.
For example a corporation might want to see the effects of three different financing options. 105 a pro forma financial statement is defined as a financial statement prepared on the basis of some assumed events and transactions that have not yet occurred. Article 11 pro forma financial information is required when events occur or conditions exist for which disclosure would be material to investors.
The fields that are automatically calculated as shown in bold below. A pro forma financial statement is one based on certain assumptions and projections. A financial plan may also include a cash flow budget which is a companys monthly forecast of.
John rollins yale university press the aaup business handbook part two. From the pro forma we know that the downpayment was 25 of the purchase price. In ralph estess dictionary of accounting mit cambridge 1981 p.
If neither the monthly mortgage payment or interest rate is explicitly stated this is typically not the case and this information is usually provided in a pro forma we can use a mortgage calculator to figure out the exact terms.