Pro forma

cmssuits

"Hi, I'm Jimmy P!"
Silver Member
From: http://www.billiardsdigest.com/trudeau_interview/

KT: There’s two ways to look at profit.........................
You can look at it that way and say this is a very profitable business on a proforma basis.



From: http://en.wikipedia.org/wiki/Pro_forma

Critics note that pro forma numbers always look more profitable than GAAP numbers, and state that many companies intentionally use pro forma results in order to mislead investors into believing the company is in much better financial shape than it is; that there is no defined meaning or accounting standard for "pro forma" and that it is therefore impossible to make an "apples to apples" comparison between companies with pro forma results in the way that GAAP accounting allows; and that most "unusual events" reported as such are part of the ordinary course of business and should be reported as such. Most companies in most capitalist countries restructure themselves often, for example, so, it is argued, it is dishonest to claim that restructuring charges are unusual, one-time events that investors should not anticipate in the future.

There was a boom in the reporting of pro forma results starting in the late 1990s, with many dot-com companies using the technique to recast their losses as profits, or at least to show smaller losses than the GAAP accounting showed. The U.S. Securities and Exchange Commission requires publicly traded companies in the United States to report GAAP-based financial results, and has cautioned companies that using pro forma results to obscure GAAP results would be considered fraud if used to mislead investors.
 

cuetique

IPT? Smells like roadkill
Silver Member
"I can reach into my keester and grab a few nuggets of solid, uh, financial information, spread it on the wall, and a finger paint the words "very profitable" in it. So, on a pro forma basis, you could say, that based on that the company is very profitable."
 

Klopek

AzB Silver Member
Silver Member
Well when KT takes the IPT public, I'm :Dsure:D he'll honest and honorable and only report GAAP-based financial results. Any one care to invest their lifelong savings in the IPT?. :rolleyes:
 

mindtriplx

AzB Silver Member
Silver Member
the beauty of pro forma is you can leave out any expenses that might make your company look not so profitable. thats how worldcom and others looked like they were making billions. i would love to see the GAAP report.
 
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