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Pro Forma Financial Statements

Pro Forma Financial Statements

Definition

This refers to a set of financial statements (usually an income statement, balance sheet, and statement of cash flow) designed to exhibit future financial results. They are created using known (or sometimes assumed) input data (usually expenses), along with an estimated amount of revenue, to project an estimated amount of earnings. These statements are commonly used for new risk funding programs such as captives and risk retention groups (RRPs).

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