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 \u2013 it\u2019s usually given, unless it\u2019s no longer relevant.\u00a0<\/p>\n
Taking an example of a legal dispute:<\/p>\n
–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If it\u2019s settled during the year<\/strong> and there are no material expenses or income<\/strong> incurred, no material balances from prior periods, it needs not to be brought up in the financial statements;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If it\u2019s settled during the year<\/strong> and there are significant related expenses or income<\/strong>, which require a separate disclosure to explain the entity\u2019s performance for the period, at least the result of the dispute needs to be disclosed;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If it\u2019s not settled during the year<\/strong>, current year\u2019s financial statement should include the details of this dispute and steps taken to resolve the dispute.<\/p>\n When preparing this year\u2019s 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.<\/p>\n 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\u2019s hardly material for the users of the report to know about it.<\/p>\n","protected":false},"excerpt":{"rendered":" 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 \u2013 it\u2019s usually given, unless it\u2019s no longer relevant.\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-3914","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\/3914","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=3914"}],"version-history":[{"count":3,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3914\/revisions"}],"predecessor-version":[{"id":3918,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/3914\/revisions\/3918"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=3914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=3914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=3914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}