Accountancy · Ch 8 — Financial Statement Analysis
Comparative Statements
Comparative Statements
Comparative Statement
A statement that presents the corresponding figures of a financial statement (the Statement of Profit and Loss or the Balance Sheet) for two or more accounting periods side by side, together with the absolute change and percentage change between them, so that the direction and pace of change can be seen at a glance.
The percentage change for any item is calculated as:
Percentage Change = (Absolute Change ÷ Figure of the earlier/base year) × 100
Worked illustration. A company's Revenue from Operations, Cost of Materials Consumed and Other Expenses for two years were as follows. Prepare a Comparative Statement of Profit and Loss.
| Particulars | 2023 (₹) | 2024 (₹) |
|---|---|---|
| Revenue from Operations | 10,00,000 | 12,00,000 |
| Cost of Materials Consumed | 6,00,000 | 6,60,000 |
| Other Expenses | 1,00,000 | 1,20,000 |
Comparative Statement of Profit and Loss
| Particulars | 2023 (₹) | 2024 (₹) | Absolute Change (₹) | % Change |
|---|---|---|---|---|
| Revenue from Operations | 10,00,000 | 12,00,000 | 2,00,000 | 20.00% |
| Less: Cost of Materials Consumed | 6,00,000 | 6,60,000 | 60,000 | 10.00% |
| Less: Other Expenses | 1,00,000 | 1,20,000 | 20,000 | 20.00% |
| Total Expenses | 7,00,000 | 7,80,000 | 80,000 | 11.43% |
| Profit before Tax | 3,00,000 | 4,20,000 | 1,20,000 | 40.00% |
A statement showing the figures of two or more accounting periods side by side, with absolute and percentage change, to reveal the direction and …
Absolute Change divided by the figure of the earlier/base year, expressed as …