Sample Pro Forma Income Statement and Things to Know About It

Do you ever hear about the pro forma income statement? Well, this statement in common occur in the field of financial. The statement tells about the financial condition, especially about the hypothetical amounts. That is why learning about sample pro forma income statement is needed.

Something that you need to know, the pro forma income statement is also nice to give the data of the profits of company. The company, in common, will generally issues this statement with the generally accepted principle of accounting in order to provide better understanding to investor.

Well, in this occasion, we will talk about the detail of pro forma income statement. For those who are curious with it, you may take a sit and read some following writings below.

Kinds of Pro Forma Income Statement

Based on the explanation as above, we may see that the pro forma income statement is an important statement in order to draw the condition of financial. Of course, this statement will be useful in order to inform that the condition of financial is good and balance.

However, before talking more about the detail of pro forma income statement, there are some kinds of this matter that you need to know. Of course, by knowing the kinds of it, you are able to choose the most appropriate statement to use.

The kinds of the pro forma income statement are:

  • Condensed pro forma income statement
  • 6-months pro forma income statement
  • Pro forma balance statement
  • 3-year pro forma income statement
  • Short pro forma income statement
  • Detailed pro forma income statement
  • Year-end pro forma income statement
  • And others

Seeing the points as above, we may see that there are some kinds of the pro forma income statement that you need to know. The kinds of statements are differentiated by the detail of it and the time of the statement. You may see the detail of each points to know more about it.

Components to Write Inside Pro Forma Income Statement

Since the pro forma income statement is kind of important document, especially for telling about the condition of financial, of course knowing the way to make it is also important to do. In order to make this kind of document, there are some components to inside.

However, the components of the pro forma income statement are maybe different based on the kinds of pro forma income statement that you make. Here, we will show you a simple component of pro forma income statement that you may use to learn.

In order to make pro forma income statement, there are some components to insert as:

  • The title of the statement, such as the ‘group profit and loss account’
  • The period of the statement
  • The sales and cost of sales
  • The gross profit that is divided into marketing expenses and administrative expenses
  • Operating profit
  • Profit before exceptional items
  • Profit before taxation, including the amount of tax
  • Profit after taxation, including the minority interest
  • Profit attributable to share holders
  • Basic earnings per share
  • Diluted earnings per share

Well, that is all about the pro forma income statement that you need to know. You may do some researches in order to find the right sample pro forma income statement to apply.

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