Pro Forma Earnings: Distinguishing the Good from the Bad

Authors

Samuel Mautz, Brigham Young University
Dr. Ted Christensen, Brigham Young University

Keywords

financial press, GAAP, Pro forma earnings, earnings press release

College

Marriott School of Management

Department

Accountancy

Abstract

The financial press has reported considerable disagreement during the past several years about the proliferation of non-standard profitability measures, generally known as ‘pro forma’ earnings. Pro forma earnings are normally defined as standard earnings adjusted for items that managers deem to be ‘one-time’ in nature or non-representative of future earnings (Weil, 2001) and are reported in the same earnings press release with the audited income number calculated according to generally accepted accounting principles (GAAP).

Recommended Citation

Mautz, Samuel and Christensen, Dr. Ted (2013) "Pro Forma Earnings: Distinguishing the Good from the Bad," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 2412.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/2412