Pro Forma
Definition
Financial statements or projections prepared on an adjusted basis to reflect a specific hypothetical condition, such as the effect of a completed transaction, a new funding round, or a strategic decision, as if that condition had been in effect for a stated period. Pro forma financial statements must be clearly labelled as pro forma and must specify the adjustments made and the basis for each adjustment.
Common Misapplication
The most common misapplication is presenting pro forma financial statements without labelling them as such or without specifying the adjustments made. A pro forma that is not identified as such may be mistaken for actual historical or current financial results.
FFI Standard Reference
This term is defined and applied in Book 1, Section 1.3: The Financial Reporting Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Pro Forma. https://ffistandard.org/glossary/pro-forma/. 2026.