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Pros And Cons Of Pro Forma Financial Statements

187 Words1 Pages
What do pro forma financial statements show? Pro forma statements provide the potential impact of envisaged future financial events on the person’s “bottom line”. These statements are a result of adjustments, projections or forecasts done on financial statements to show the expected or predicted financial results at a specific date or for a particular period, today. What are pro forma financial statements based on? Pro forma financial statements are based on certain predictions, assumptions and projections. For example, a person might want to see the effects of different financing options (loan or cash) and/or future expenditures (buy a car or save for education) on their financial position or health. Therefore, one prepares projected balance
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