FSA Notes2

Study Material & Notes for the Chapter 11

Financial Statements Analysis & Tools

II.  COMPARATIVE STATEMENTS

FSA_2.1
i.  Comparative Statements
  • It is the statement prepared to compare individual items or components of the financial statements of two or more years of a company. 
  • The amount of each component of company’s financial statements is placed side by side and difference is ascertained, which is shown as a percentage of the base year. 
  • A comparison of components of company’s financial statements of two or more years is known as Intra-Firm comparison, whereas Comparison of company’s financial statements with another Organisation is called inter-firm comparison.
ii. Comparative Balance Sheet
  • It is the statement prepared to compare individual items or components of Balance Sheet of two or more years of a company. 
iii. Comparative Statement of Profit & Loss
  • It is the statement prepared to compare individual items of Statement of Profit & Loss of two or more years of a company. 

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