Comparative financial statements
Comparative financial statements present amounts and disclosures for prior periods as separate statements comparable with the current period. Under ISA 710, the auditor’s reporting approach differs from corresponding figures, where prior-period information is integral to the current statements. Requirements depend on the comparative presentation and circumstances.
Worked example
An entity presents complete financial statements for two years; the auditor considers reporting on each period under the applicable requirements.
Common mistake
Do not treat every prior-year figure as a separate comparative financial statement or assume the same opinion wording applies in both forms.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |