the balance sheet that results after a merger when

Posted by babble on 23/April/2003 at 17:03:

In Reply to: what does "pro forma" actually mean ? i have also seen such posted by edwinchester on 23/April/2003 at 15:01:

the two co's historic balance sheets are simply added together.

Its only a vague guideline balance sheet and not very reliable since there may have been differing accounting policies drawing up the different balance sheets, and various other distorting factors.

They are there for guidance only, and should be taken with a heavy pinch of salt.

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: things as pro forma balance sheets etc. Whats the significance of "pro forma" accounts ?

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Comments:	: the two co's historic balance sheets are simply added together. : Its only a vague guideline balance sheet and not very reliable since there may have been differing accounting policies drawing up the different balance sheets, and various other distorting factors. : They are there for guidance only, and should be taken with a heavy pinch of salt. : ----------- : : things as pro forma balance sheets etc. Whats the significance of "pro forma" accounts ?

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