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What is the difference between ‘Corresponding Figures and Comparative Financial Statements’?
I know their definition but I would request you to tell me the practical examples if possible.
I searched everywhere I could but I am not satisfied on my own because I could not understand on its practical level.
Please help me out!!
This is the definition section (section 6) of ISA 710:
“Definitions
6. For purposes of the ISAs, the following terms have the meanings attributed below:
(a) Comparative information – The amounts and disclosures included in the financial statements in respect of one or more prior periods in accordance with the applicable financial reporting framework.
(b) Corresponding figures – Comparative information where amounts and other disclosures for the prior period are included as an integral part of the current period financial statements, and are intended to be read only in relation to the amounts and other disclosures relating to the current period (referred to as “current period figures”).
The level of detail presented in the corresponding amounts and disclosures is dictated primarily by its relevance to the current period figures.
(c) Comparative financial statements – Comparative information where amounts and other disclosures for the prior period are included for comparison with the financial statements of the current period but, if audited, are referred to in the auditor’s opinion.
The level of information included in those comparative financial statements is comparable with that of the financial statements of the current period.”
Does that make it any easier?
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