The dangers of pro forma reporting From: The CPA Journal | Date: February 1, 2003| Author: James, Kevin L; Michello, Franklin A | Copyright New York State Society of Certified Public Accountants Feb 2003. Provided by ProQuest LLC.Copyright information

REPORTING PRO FORMA EARNINGS OUTSIDE OF THE CONTEXT OF GAAP EARNINGS can be a deliberate attempt by management to manipulate investor perception and, hence, stock price.

The use of pro forma earnings statements in press releases issued by publicly held companies has become a popular trend, but these statements are considerably different from what has traditionally been called pro forma. Traditional pro forma financial statements were commonly used to show the results of some assumed e...

Related newspaper, magazine, and journal articles from HighBeam Research

	Pro forma earnings: Adding value or distorting perception? The CPA Journal ; ... titled "State of Financial Reporting Today: An Unfinished Chapter III" (given on June 21, 2001, and available at www.sec.gov/ news/speecharchive.shtml), "Indeed, the average stockholder today is the average American who lives next door, is your aunt or uncle ...
	Managed Disclosure and Pro Forma Earnings The CPA Journal ; The accounting profession has attempted to create a rich information environment that provides relevant and reliable financial disclosures. The auditing profession has attempted to provide some degree of assurance that management's financial disclosures are presented in accordance with the rules of
	Informative or misleading? CA Magazine ; WHILE PRO FORMA REPORTING HAS SOME RESTRICTIONS, THERE IS STILL A LOT OF REPORTING FLEXIBILITY There is a perception that managers are increasingly reporting non-GAAP earnings measures - colloquially referred to as pro formas - in their firms' earnings press releases, and that these pro forma
	SEC prosecutes first pro forma earnings fraud case and issues cautionary advice The Attorney - CPA ; Securities Regulation Update The U.S. Securities & Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the author, and do not necessarily reflect the views of the
	Let's Be Balanced with Pro Forma Earnings.(Brief Article) Financial Executive ; Pro forma earnings can be analytically useful in describing company performance. Historically, the major use of pro forma results was to more comparably present two periods after there had been a major acquisition or refinancing. But over the last few years, the practice has been abused at the

See all results.