What is Comparative Statement? Mention TWO Objectives of Preparing Comparative Statement. (2024)

When Financial Statement figures for two or more years are placed side-by-side to facilitate Comparison these are called “Comparative Financial Statements”. Such statements provide for columns to indicate the Increase or Decrease in these figures from one year to another in “Absolute Figures” and in “Percentage Form” .Objectives of Comparative Financial Statements are :To make the Data Simpler and More Understandable : The main aim of preparing Comparative Financial Statements is to put the Data for a number of years in Simpler and Comparable Form .To Indicate the Trend : Another aim of Comparative Financial Statements is to indicate the Trend of Change by putting the Figures of Production Revenue from Operations Expenses and Profits etc. for a number of years side-by-side .