What is an example of pro forma financial information?


Pro forma financial information is financial information shown together with adjustments to illustrate the impact of an event or transaction on unadjusted financial information as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration. It is presumed that pro forma financial information is presented in columnar format consisting of

a) the unadjusted financial information.

b) the pro forma adjustments; and

(c) the resulting pro forma column.

Different presentations of pro forma financial information may be included in the prospectus depending on the nature of the event or transaction and how the responsible party intends to illustrate the impact of such event or transaction on the unadjusted financial information of the entity.

Below is presented the example of pro forma statement of profit and loss.



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