What Are The Functions Of Comparative Financial Statement?

Comparative financial statements help the stake holders of organizations to compare the company's financial condition over the number of years. The financial statements of a company can also be compared with the other company in the industry. Therefore GAAP and IFRS stress on adopting the same standards for making financial statements so that financial statements can be compared on the time as well as on industrial basis. The comparison of financial statements benefit the investors, creditors, lenders, customers, general public, other companies in the same industry and for the internal management as well. More comparable and consistent the financial statements are, more they help management to evaluate the company's performance over the number of years.