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Definition of pro forma.
Pro forma costs meaning. Pro forma financials may not be GAAP. Based on financial assumptions or projections. A Pro-forma invoice is a preliminary document that states all the relevant information about a future potential purchase.
What are Pro Forma Earnings. Pro forma is actually a Latin term meaning for form or today we might say for the sake of form as a matter of form. A pro forma invoice.
It lists the work to be completed the quantity and the price youre charging for the products or services. When it comes to accounting pro forma. Simply a pro forma invoice is a confirmed purchase order where buyer and supplier agree on detail and cost of the product to be shipped to the buyer.
The phrase pro forma in an appealable decree or judgment usually means that the decision was rendered not on a conviction that it was right but merely to facilitate further. In other words it is a preview of the actual invoice if the sale transaction is completed. For example if a company is considering acquiring another it may prepare a pro forma financial statement to estimate what effect the acquisition would have on its own financial circumstances.
As a matter of form or for the sake of form. Pro-forma invoices are used for many purposes in business. Pro forma Latin for as a matter of form or for the sake of form is a method of calculating financial results using certain projections or presumptions.
Essentially pro forma financial statements are financial reports based on hypothetical scenarios that utilize assumptions or financial projections. According to Merriam-Webster pro forma means. Pro forma Latin for as a matter of form or for the sake of form invoices often come into play with international transactions especially for customs purposes on imports.
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