Definition for : Pro forma, pro forma statements
Changes in the Scope of consolidation require the preparation of pro forma financial statements. Pro forma statements enable analysts to compare the company's performances on a consistent basis. In these pro forma statements, the company may either: restate past accounts to make them comparable with the current Scope of consolidation; or remove from the current Scope of consolidation any items that were not present in the previous period to maintain its previous configuration.
(See Chapters 6 and 9 of the Vernimmen)
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