Unlike most financial statements filed with the SEC, pro-forma financial statements are often not prepared in accordance

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Unlike most financial statements filed with the SEC, pro-forma financial statements are often not prepared in accordance with generally accepted accounting principles. Many of the numbers included by companies in these “pro-forma” statements are based on assumptions that are not recognized as appropriate for SEC filings. Sometimes, companies highlight positive information and leave out information about certain costs or charges, such as stock-based compensation, interest, and taxes. The real question is whether or not investors are being misled.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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