Pro forma

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The term pro forma (Latin for "as a form" or "by shape" issue) is most often used to describe practices or documents provided as courtesy or meet minimum requirements, as appropriate with norms or doctrines, tend to be either indifferent or considered formalities.

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Accounting

The prof forma accounting is a statement of corporate financial activity while not including "unusual and non-recurring transactions" when declaring how much money the company actually does. Costs that are often excluded from pro forma results include corporate restructuring fees, impairment of corporate investment, or other accounting costs, such as adjusting the current balance sheet to correct incorrect accounting practices in previous years.

There was an explosion in the reporting of pro forma results in the United States beginning in the late 1990s, with many dot-com companies using techniques to rearrange their losses as profits, or at least to show smaller losses. of US GAAP accounting shows. The US Securities and Exchange Commission requires public companies in the United States to report the financial results of US GAAP, and has warned companies using pro forma results to obscure US GAAP results would be considered fraudulent if used to mislead investors.

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Business

Financial statements

In business, professions are prepared before any planned transactions, such as mergers, acquisitions, new capital investments, or changes in capital structure such as the emergence of new debt or stock issuance. The pro forma modeled the anticipated results of the transaction, with particular emphasis on projected cash flow, net income and taxes. As a result, the pro forma statement summarizes the future status of the projected company, based on the current financial statements.

For example, when transactions with material effects on the company's financial condition are contemplated, the Treasury will prepare, for management and board reviews, business plans containing pro forma financial reports showing the expected effect of the proposed transaction on eligibility corporate finance. Lenders and investors will need such statements to compile or confirm compliance with debt agreements such as debt service coverage coverage and debt to equity ratio. Similarly, when a new company is envisaged, its founders will prepare a proforma financial statement for potential investor information. Pro forma numbers should be clearly labeled as such and the reasons for any deviations from figures reported in the past are clearly described. Also, the bank will request a pro forma statement instead of a tax return to start the business to verify cash flow before issuing a loan or line of credit.

Invoice

In a trade transaction, the pro forma invoice is a document stating the commitment of the seller to sell the goods to the buyer at certain prices and terms. This is used to declare the value of trade. This is not an actual invoice because it is not used to record receivables for sellers and payable to buyers.

Simply, the "prof iaa " invoice is a "confirmed purchase order" in which the buyer and the supplier agree on the details and cost of the product to be shipped to the buyer. The prof forma tag is generally raised when the seller is ready to submit the material but wants to make sure that payment is being delivered before delivery. And similarly, customers also want to know which components are included in the invoice prof forma to avoid any disputes later.

The sales offer is set up in the form of an invoice prof forma that is different from a commercial invoice. This is used to generate sales and post before commercial invoice. The contents of the

prof forma invoice are almost identical to commercial invoices and are usually considered binding agreements, but because the prof forma invoice is not a legally binding document, the price may change before the final sale.

Professa bills can also be used for shipments containing items not purchased or sold, such as gifts, samples and personal items, while commercial invoices are used when commodities are shipped < i> is purchased or sold. However, it is best to use customs or declaration invoices because border officials need value for export declarations. Customs invoices or declarations are commonly used in New Zealand for air parcel shipments.

International trade

Profit bills are similar to commercial invoices which, when used in international trade, represent the details of international sales to the customs. Proforma bills are shown on the spot of a commercial invoice when there is no sale between the sender and the importer (for example, in the case of RMA for the replacement), or if the terms of the sale are between the seller and the buyer in such a way that the commercial invoice is not available at the moment international shipping. A prof forma invoice is required to state the same facts as the commercial invoice and the content specified by the government that is a party to the transaction.

In some countries, customs may receive a professa invoice (produced by an importer and not an exporter) if the required commercial invoice is not available upon filing of the admission document at the port of entry to obtain the goods exempt from customs. US Customs and Border Protection, for example, uses the prof forma invoice to assess the task and check the goods, but the importer on the note is required to post the bond and generate a commercial invoice within 120 days from the date of entry. If the required commercial invoice is required for statistical purposes, the importer must generate a commercial invoice within 50 days from the date the Customs clears the item to the importer.

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Legal

In law, the pro forma court decision is only meant to facilitate the legal process (indeed to move the matter).

Pro forma audiences are used to comply with formal requests. For example, one pro forma audience can be heard by a judge to order production of certain evidence or to schedule another date.

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Engineering

In technique, pro forma images are used to facilitate the release of imaginary image images.

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Government

Commonwealth System

In certain Commonwealth countries with Westminster systems, such as the UK, Canada, and Australia, pro forma bills are introduced shortly before the speech considerations of the throne. Pro forma bills are an incomplete part of the legislation and only go through the first reading phase. They symbolize the authority of parliament to discuss matters other than those prescribed by the head of state, which as if parliament were called. After the first reading, the bill was never considered further. The pro forma tag was first introduced in the House of Commons of England in 1558.

In the Royal Parliament of England, the equivalent is the Outlawries Bill in the House of Commons and Select Vestries Bill in the House of Lords. In the Canadian Parliament, the bill is entitled Bill C-1, a Law honoring the Administration of Office Oaths, and Bill S-1, the Law relating to Railways in the House of Commons of Canada and the Senate of Canada, respectively. In the Australian Parliament and Australian state and territory parliaments, pro forma bills only consist of short degrees, and do not continue beyond the first reading stage.

United States

In the federal government of the United States, either the House of Congress (the House of Representatives or the Senate) may hold a pro forma session where no formal business is expected to take place. This is usually to fulfill the obligations under the Constitution "that the two assemblies can not delay more than three days without the consent of the other party." Pro forma sessions can also be used to prevent bills from vetoing the President, or calling Congresses into special sessions. They have also been used to prevent the president from making a break appointment.

In 2012 President Barack Obama attempted to make four appointments during the proforma session, calling the practice of suspension of divorce detention a question. However, by 2014, the United States Supreme Court at NLRB v. Noel Canning stipulates that the President has used his presidential powers inappropriately to make this appointment, stating that while the Senate in a recess is interrupted by a pro forma session the time period between sessions is not long enough to ask for such power that.

A similar practice exists in the state legislature, and for the same reason; for example, in Minnesota, the legislature has the same three-day meeting requirements that Congress possesses. Pro forma sessions are held to meet these requirements.

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See also

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References

Source of the article : Wikipedia