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A famous analyst once said it is not important what financial statement shows us- it’s what...

A famous analyst once said it is not important what financial statement shows us- it’s what they hide that counts. What does the analyst mean by this statement? How would a company hide information inside financial statements? What is a pro forma financial statement and how is this used in the financial markets?

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Answer #1

# A Company hide information in the financial statements by not showing all transaction of debit and credit of company .

# Pro-forma financial statement is a statement that uses pro-forma calculation method, often designed to draw potential investors, focus to specific figures when a company issue an earnings announcement.

# pro-forma used in financial market as report of company earnings that excludes unusual transaction. Excludes expenses should include declining investment expenses, restructuring cost and adjustment.

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