1.4 Pro Forma Financial Information (Article 11 of Regulation S-X)

Besides filing the separate financial statements of an acquiree or the abbreviated income statements of a real estate acquiree, registrants need to consider whether they must provide pro forma financial information in accordance with Article 11. Pro forma financial information helps investors evaluate the impact of a significant business acquisition by showing how that acquisition (or acquisitions) might have affected the registrant’s historical financial position and results of operations if the transaction had occurred on an earlier date.

Considerations include the following:

• When pro forma financial information is required (see Section 4.1).
• The form and content of the pro forma financial information (see Section 4.2).
• Periods to be presented, including updating requirements (see Section 4.3).
• The determination of pro forma adjustments (see Section 4.4).

In addition, Section 4.5 addresses certain special circumstances in which pro forma financial information may be provided when separate preacquisition financial statements are not required, or vice versa.