what s the difference between pro forma and gaap financials 
there are no universal rules that companies must follow when reporting pro forma earnings this is why it is important for investors to distinguish between pro forma earnings and those reported using generally accepted accounting principles gaap gaap enforces strict guidelines when companies report earnings while pro forma figures are better thought of as hypothetical earnings for this reason investors must examine not only the pro forma earnings but also gaap earnings and never mistake one for the other 