Pro-forma

Pro-forma accounts are drawn up as though acquisitions and disposals that took place during a period had taken place at the start of it. Pro-forma accounts should therefore give a better indication of underlying trends in the business as it is now.

The most looked at (and most often disclosed) pro-forma statement is the P & L, although a pro-forma cash flow statement should also be useful when available. The concept is very similar to that behind organic growth numbers.

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