Comparative Information

Introduction

ISA 710 Comparative Information - Corresponding Figures and Comparative Financial Statements requires that comparative figures comply with the identified financial reporting framework and that they are free from material misstatement.

The IASB's Framework for the Preparation and Presentation of Financial Statements and IAS 1 Presentation of Financial Statements both require that financial statements show comparatives.

Categories of comparative

• corresponding figures where preceding period figures are included as an integral part of the current period financial statements; and
• comparative financial statements where preceding period amounts are included for comparison with the current period.

Corresponding figures

Audit procedures in respect of corresponding figures should be significantly less than for the current period and are limited to ensuring that corresponding figures have been correctly reported and appropriately classified. This involves evaluating whether:

• accounting policies are consistently applied; and
• corresponding figures agree to the prior period financial statements.

Comparative financial statements

Sufficient appropriate evidence should be gathered to ensure that comparative financial statements meet the requirements of an applicable financial reporting framework. This involves evaluating whether:

• accounting policies are consistently applied; and
• comparative figures agree to the prior period financial statements.

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Tags:	comparatives;corresponding figures