Comparative Financial Statements

Comparative financial statements show the absolute figures of two years indicate the increase or decrease in these figures from one year to another as well as changes in percentage form.

Comparative Balance Sheet of a company shows the information contained in the Balance sheet for two years, the changes in absolute terms as well as in percentage form.

Comparative Income Statement shows increase or decrease in various items of Trading and Profit and Loss Account, in absolute terms and in percentage form, to know about the progress of the business.

Common Size Statements are the statements in which individual figures are converted into percentages to some common base .Common Size Statements may be prepared for the Balance Sheets or the Income statements.

A Common Size Balance Sheet is a statement in which total of assets or liabilities is assumed to be equal to 100 and all the figures are expressed as percentage of the total.

Common Size Income Statement is a statement in which the figure of net sales is assumed to be equal to 100 and all other figures of 'Profit and Loss Account are expressed as percentage of Net Sales.