article thumbnail

How to create & use pro forma statements

Cube Software

Pro forma financial statements and GAAP It's important to note that, since pro forma statements are based on hypothetical or projected data, they are not compliant with generally accepted accounting principles—GAAP statements must be based on actual financial results.

GAAP 40
article thumbnail

What is Quality of Earnings?

CFO Share

QOE reports go beyond the balance sheet and profit and loss statement – they challenge the underlying data through rigorous testing and management interviews to assess accuracy, and risk. Sales concentrations and/or backlog risk. Analysis of inventory reserves and allowances. Transactions with related parties.