From Financial Reporting, Financial Statement Analysis and Valuation (7th Edition) by James M. Wahlen; Stephen P. Baginski; Mark Bradshaw.

Chapter 4 question 4.3: PRO FORMA EARNINGS. Firms often provide supplemental disclosures that report and discuss income figures that do not necessarily equal bottom-line net income from the income statement. Discuss the merits and shortcomings of this managerial practice.