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28 Sep 2019
Pro-forma financial statements can raise expectations about abusinessâs financial performance. If the actual performance doesnot meet those expectations, there can be negativeconsequences.
1. Should companies continue to publish pro-formainformation?
2. Should they be expected to publish pro-forma information?Why
*Comment: it seems like pro-forma information can be easilymanipulated because thereâs not much regulation; therefore, it isnot difficult for companies to abuse it and make earnings appear tobe something there not. I would like a different perspective on it.Most of my conclusions are that it does more harm than good.
Pro-forma financial statements can raise expectations about abusinessâs financial performance. If the actual performance doesnot meet those expectations, there can be negativeconsequences.
1. Should companies continue to publish pro-formainformation?
2. Should they be expected to publish pro-forma information?Why
*Comment: it seems like pro-forma information can be easilymanipulated because thereâs not much regulation; therefore, it isnot difficult for companies to abuse it and make earnings appear tobe something there not. I would like a different perspective on it.Most of my conclusions are that it does more harm than good.
Keith LeannonLv2
28 Sep 2019