What is PRORATA basis ?

Question

prorata basis

Answer 1

Literally, pro rata (or pro-rata) means assigning an amount to a fraction, according to its share of the whole.  

In other words, if you are being charged an interest rate of 12 percent per annum, you could pro-rate that to be 1 percent per month.

A company may also estimate earnings to include an acquisition completed in the middle of a reporting period on a pro-rata basis, as if the combined entities were one for the entire period. These would be called pro-forma earnings, as generally accepted accounting principles (GAAP) would not apply.