[proh fawr-muh] 
| 1. | according to form; as a matter of form; for the sake of form. |
| 2. | Commerce. provided in advance of shipment and merely showing the description and quantity of goods shipped without terms of payment: a pro forma invoice. |
| 3. | Accounting. indicating hypothetical financial figures based on previous business operations for estimate purposes: a pro forma balance sheet. |
| pro for·ma (prō fôr'mə) adj.
[New Latin prō fōrmā : prō, for the sake of + fōrmā, ablative of fōrma, form.] |
Doing something pro forma means satisfying only the minimum requirements of a task and doing it in a perfunctory way: “Her welcoming address was strictly pro forma: you could tell that her mind was a million miles away.” From Latin, meaning “by form.”
Pro Forma
A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results in order to emphasize either current or projected figures.
Investopedia Commentary
Pro forma financial statements could be designed to reflect a proposed change, such as a merger or acquisition, or to emphasize certain figures when a company issues an earnings announcement to the public.
Investors should heed caution when reading a company's pro forma financial statements, as the figures may not comply with GAAP. In some cases, the pro-forma figures may differ greatly from the those derived from generally accepted accounting principles.
Related Links
Understanding Pro-Forma Earnings
See also: Annual Report, Earnings, Generally Accepted Accounting Principles - GAAP, Goodwill, Pro-Forma Earnings
Also spelled: proforma