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ECT News Community   »   E-Commerce Times Talkback   »   Re: E-Biz Takes Heat for Cooking Up 'Pro Forma' Results

Re: E-Biz Takes Heat for Cooking Up 'Pro Forma' Results
Posted by: Nora Macaluso 2001-08-03 13:23:06
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The growing use of "pro forma" financial results -- that is, when companies report income
or loss figures excluding a host of supposedly "one-time" charges -- is drawing attention
from critics who say companies may be publishing pro forma earnings
to make quarterly earnings reports look better than they actually are.

"It's a pasta primavera," Harvard University assistant professor of accounting Mark
Bradshaw told the E-Commerce Times "Everybody has their own recipe. That's the problem."

Re: E-Biz Takes Heat for Cooking Up 'Pro Forma' Results
Posted by: Michael 2001-08-05 10:53:52 In reply to: Nora Macaluso
No surprises here - it seems that internet based business is merely approaching the reporting aspect of fiscal management with the same level of "creativity" as the brick and mortar world has been for decades.

However, the risks inherent in adoption of this direction by ecommerce operations is considerable, and should command additional review by those at the helm.

With the level of ongoing media attention focused on the flurry of "dot bombs", the resulting investor concerns, and of course the stock pricing slumps associated, one would presume a company that proves itself honest and forthright, both in its day to day operations, and financial reporting, would fare better in this tumultuous environment.

Time will tell if the corporate internet world is listening to its investors, and giving due process to their concerns!

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