Pro forma financial information can be an important supplement to historical financial results and becomes particularly useful during uncertain times when prior results alone may not give an accurate picture of the prospects of an issuer. However, for many businesses, preparing pro forma information for purposes of a listing, an acquisition or other corporate transactions is largely an exercise that is beyond the normal financial reporting process. Furthermore, there is relatively few interpretative guidance on the topic, which has contributed to possible inconsistency and diversity in how such information is presented. 

KPMG’s new report, Pro forma financial information under the Hong Kong listing rules, introduces a set of guiding principles for consistent application in the preparation of pro forma financial information. It includes an overview of the nature and purpose of pro forma financial information and when it should be presented, as well as information about adjustments, formatting and presentation. 

The report also includes a selection of potential real-life challenges that issuers may face across a variety of different scenarios, as well as practical examples on how to solve some of the key issues.