pro forma
pro forma
Definition
pro forma (prō fôr′mə)
adjective, adverb
for (the sake of) form; as a matter of form
Etymology: L
pro forma Finance Definition
Earnings
that have been adjusted by the company to exclude expenses that are not
representative of the companys true business. During the height of the
Internet boom during the late 1990s, many companies excluded the cost of
employees stock options. Other items that often are excluded from companies
regular earnings are charges for extraordinary items, charges for discontinued
operations, and one-time charges. Pro-forma earnings are in contrast to GAAP
earnings, which follow set rules developed by accountants. Also called normalized earnings. See also GAAP.
pro forma
Law Definition
adj
Latin
- For form.
- Done as a formality, rather than because of conviction, in order to make possible further proceedings.
- In accounting procedures, done in advance to provide a what-if statement, predict results, or to convince. For example, a balance sheet showing combined figures of two companies in case of a merger.
Browse dictionary entries near pro forma
- pro-family
- pro-choice
- pro bono publico
- pro bono
- pro-am
- pro
- prizewinning
- prizewinner
- prizer
- prizefight
- pro hac vice
- pro-life
- pro patria
- pro-
- pro rata
- pro se
- pro tanto
- pro tempore
- proa
- proactive
