The Securities and Exchange Commission is concerned with the growing practice of issuing “pro forma” earnings reports that tend to paint a rosy picture of company results.
Pro forma, which means “as if”, has in recent years evolved into “a sophisticated term for lying about your results,” says Wharton accounting professor emeritus Peter H. Knutson. He compares companies that abuse pro forma statements to the husband who stumbles home in the middle of the night and tells his wife, “Don’t look at the lipstick on my collar. That doesn’t count. The fact that I’m home is what counts.”
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just the right article for my management class in managing technology and innovation.