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What are pro forma financial statements? What framework is required to be used in their preparation?...

What are pro forma financial statements? What framework is required to be used in their preparation?

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A pro forma financial statement is one which is based on surtain assumptions and projections. company uses pro forma financial statement in business planning and control. it allow the management to develop various sales and budget projections.

The framework that are required to be used in the preparation of pro forma financial statement is According to the paragraph 11 of AR-C section 120 states that the accountant should obtain an understanding of the applicable financial reporting framework and the significant accounting policies intended to be used in the preparation of pro forma financial statement.

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