As a general rule, comparative information should always be given within the financial statements and its notes. When it comes to comparative narrative information, the same applies – it’s usually given, unless it’s no longer relevant. 

Taking an example of a legal dispute:

–       If it’s settled during the year and there are no material expenses or income incurred, no material balances from prior periods, it needs not to be brought up in the financial statements;

–       If it’s settled during the year and there are significant related expenses or income, which require a separate disclosure to explain the entity’s performance for the period, at least the result of the dispute needs to be disclosed;

–       If it’s not settled during the year, current year’s financial statement should include the details of this dispute and steps taken to resolve the dispute.

When preparing this year’s financial statements and compiling comparative information ask yourself if there are any balances or transactions related to that piece of information or if the matter is still relevant at all. Your financial statements should disclose information about material balances and transactions for the period.

Generally speaking, if a legal dispute for an example was settled during the reporting period in a way that you incurred no expenses or got no gain, it’s hardly material for the users of the report to know about it.