1. What is pro forma reporting according to regulation SX of the SEC? How has pr

1. What is pro forma
reporting according to regulation SX of the SEC? How has pro forma
reporting been used by corporations over the years? Summarize the
arguments for and against this type of reporting.2. Exhibits 1
and 2 provide sample earnings announcements and pro forma information
released by Proxim and Cisco Systems respectively. Do you believe these
disclosures are consistent with the spirit of the SEC regulation or are
they corporate abused of financial disclosure? As a CFO of these
companies what would you have reported in your earnings announcement
for the respective period?3. Do you believe the SEC should permit the type of disclosure shown in exhibits 1 and 2?4.
What is the usefulness of the pro forma versus GAAP earnings
disclosures found in Exhibits 1 and 2 with regardsf to evaluating:a. Recent financial performance;b. Expectations of future earnings;c. Credibility of management;d. Quality of earnings; ande. Equity valuation