Comparative Information in the Financial Statements

Add Content HereLet’s understand about providing Comparative information in the Financial Statements:Ind AS 1 Says Minimum comparative information should be provided – What is that? Let’s see – Ind AS Says “An entity should present comparative information in respect of the preceeding period for all amounts reported in the current period’s financial statements except when Ind AS permit or require otherwise”. It means, when you present an information in the Financial Statement for the current period, its comparable figure for the previous period should also be presented. If you present current year sales, then PY sales information should also be given. “ALL AMOUNTS REPORTED IN CURRENT PERIOD’S FINANCIAL STATEMENTS” is the focus. For each and every items reported in the CY, corresponding PY figures should be given. But if Ind AS permits or requires you otherwise, then PY comparative information need not be furnished. Some times certain narrative and descriptive information will be given in order to understand current period’s financial statements. In those cases, Comparative information for narrative and descriptive information should be given for previous year as well. Let’s take an Eg – If an entity has disclosed status of a legal dispute last year and if its outcome was considered as uncertain at the end of the preceding period, then that entity should continue giving the narrative and descriptive information and mention that outcome was uncertain at the end of the immediately preceding reporting period and record that fact that dispute is yet to be resolved. So, what are the components of Comparative Information: In order to enable comparison, entity should present, minimum: 2 Balance Sheets 2 Statement of Profit and Loss 2 Statement of Cash Flows 2 Statement of Changes in Equity and Related Notes. Whether any additional comparative information can be provided? Yes ! Additional comparative information can be presented i.e., these are all in addition to the minimum comparative financial statements required by Ind Ass. But the point is those information should be prepared in accordance with Ind AS. This comparative information can have one or more statements which we have discussed in ‘Complete set of financial statements’ but they need not comprise a complete set of financial statements.readmore