It happens so often in practice \u2013 you prepare the main statements with current and prior year figures, but when you get to the notes and the text part, it\u2019s often neglected that those figures also need comparatives.\u00a0<\/p>\n
The reason why statements are required to also give comparatives is inherently in the name \u201ccomparative\u201d \u2013 people need to compare figures given. They need to compare the information given to assess how you\u2019re doing. For an example if you\u2019re only showing this years loan liabilities and no prior year balances how would we know if you\u2019ve taken any new loans or repaid anything? I believe you would want to give the users of the statements this information. And it\u2019s not only balances in the statements, as I said, it\u2019s also the notes and the text. It\u2019s often neglected because it\u2019s not in the form of a table. With the table you\u2019d know that there needs to be two columns, but in the text it\u2019s easier to overview this requirement.<\/p>\n
One thing I\u2019d also like to state and ask that you keep in mind is that those comparatives always need to be correct. It\u2019s first off keeping the groupings and accounting methods similar (consistency), but what I mean is simpler than that. What I\u2019ve seen often happen is that someone would just take the text from prior year, change the current period figures, but forget the comparatives in brackets. Why? I really don\u2019t know, but it happens. So just make it a habit of yours to make sure this doesn\u2019t happen with you.<\/p>\n","protected":false},"excerpt":{"rendered":"
It happens so often in practice \u2013 you prepare the main statements with current and prior year figures, but when you get to the notes and the text part, it\u2019s often neglected that those figures also need comparatives.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,46],"tags":[],"class_list":["post-3780","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-1-annual-report"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=3780"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3780\/revisions"}],"predecessor-version":[{"id":3781,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3780\/revisions\/3781"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}