Pro forma, the Latin word for “form” or “for the sake of form”, is a method of calculating financial results using certain projections or assumptions.
Provisional financial statements may not comply with GAAP, but may be published to draw the attention of potential investors to certain aspects.
They can also be used by management within the company to help make business decisions.
It is illegal for public companies to mislead investors with preliminary financial results that do not use the most conservative estimates of income and expenses.