via Investopedia - Pro-Forma Balance Sheet

A balance sheet known to provide exaggerated assumptions are known as a way of sugar coating less than ideal results from one-time impairments that can crop up.

The pro-forma method in the gold mining sector is presenting only the best drill cores when there are no earnings, or perhaps using an overly large mill to boast bulk tonnage capacity out of a narrow vein project, or loosening grade controls, mining at or below cut-off grades.

A pro-forma balance sheet may also be used to do the opposite of expectations. GBN.V's balance sheet is an example of pro-forma expectations and misleading assumptions. They have relied on pro-forma for years, while giving no indication that the balance sheet is pro-forma.

There are no earnings, though there is the cost of revenue which is taxed. But none of the other activities seem to be generating any revenue. They must begin now to declare earnings since five years will have passed on April 1st.

http://www.investopedia.com/walkthrough/corporate-finance/4/capital-investment-decisions/pro-forma.aspx

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