The Complete Vocabulary Builder Workbook

pro-forma

IPA:

Dictionary definition of pro-forma

Done or presented as a formality or for the sake of appearance.
"We need to submit a pro forma invoice to our client before delivering the goods."

Detailed meaning of pro-forma

"Pro forma" is a Latin phrase that translates to "as a matter of form" or "for the sake of form." It is used to describe something that is done or presented as a formality or for the sake of appearance, rather than having any real substance or value. The term is commonly used in business, finance, and law.

In the business world, pro forma financial statements are often used to present an estimate of future financial performance, usually for a specific purpose such as an acquisition, merger or to show the financial results of a proposed new business venture. These statements are not prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are not audited.

In law, pro forma court orders or agreements are used as a formality or to comply with a legal requirement, but they do not have real legal consequences or bind the parties to any action.

In general, pro forma is used to describe something that is done or presented as a formality, for the sake of appearance, or to comply with a requirement, but it does not have real value or substance behind it.

Example sentences containing pro-forma

1. The company sent a detailed pro forma invoice before shipping.
2. They always provide a pro forma statement before the meeting.
3. Our expectations are set using the pro forma financial figures.
4. His presentation included a pro forma profit and loss account.
5. Before starting the project, we need a pro forma budget estimate.
6. The pro forma balance sheet showed a promising outlook.

History and etymology of pro-forma

The adjective 'pro-forma' has its origins in Latin. It is a combination of two Latin words: 'pro,' meaning 'for,' and 'forma,' meaning 'form' or 'appearance.' When something is described as 'pro-forma,' it is typically done or presented for the sake of formality or appearance rather than for substantive or practical reasons. In business and financial contexts, 'pro-forma' documents, such as pro-forma invoices or pro-forma financial statements, are often used to provide estimates or projections of financial figures, often for planning or presentation purposes, rather than reflecting actual transactions. The term 'pro-forma' emphasizes the idea that these documents are created primarily to meet formal requirements or to present information in a standardized format.

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Further usage examples of pro-forma

1. Lenders typically ask for a pro forma income statement in advance.
2. The pro forma cash flow gives us a glimpse into potential revenue.
3. Their team always insists on a pro forma contract for clarity.
4. The board reviewed the pro forma figures for the upcoming year.
5. The investors felt reassured after seeing the pro forma analysis.
6. We adjust our strategies based on pro forma market evaluations.
7. The accountant diligently prepared the pro forma financial reports.
8. To understand the merger's effect, we reviewed a pro forma statement.
9. The pro forma projections are often optimistic in startups.
10. The pro forma documentation aids in predicting future expenditures.
11. Before the event, a pro forma schedule was circulated among attendees.
12. They recommended modifications based on the pro forma feedback.
13. The client wanted a pro forma overview of the expenses involved.
14. The pro forma layout helped visualize the final product design.
15. The bank asked for pro forma earnings before approving the loan.
16. The pro forma business model impressed the potential partners.
17. Investors often scrutinize the pro forma data for any inconsistencies.