Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    Comparison Standards..

    Uploaded by

    rustyjhon24

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Comparison Standards..

    Uploaded by

    rustyjhon24
    8 views15 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    8 views15 pages

    Comparison Standards..

    Uploaded by

    rustyjhon24

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 15

    Group 1

    Leader:
    Jared Sulit
    Members :
    Alvarado Jhon Rusty
    Erezuela April Rose
    Bantolo Karen
    Martinez Lovely
    Sa onoy Irish Joy
    COMPARISON
    STANDARDS
    Comparison standards

    One of the qualitative


    characteristics of a good financial
    statement is comparability.
    This is the ability of the financial
    statement to create a basis and allow the
    identification of similarities and
    differences between the statements being
    compared.

    More often than not, this


    information could lead to a reasonable
    conclusion.
    The comparison standards that can
    be used by entities.

    • Intracomparability
    • Intercomparability
    • Industry standards
    Intracomparabilit
    y
    In this kind of comparison, the
    company’s financial statements for the
    current period are being compared with
    the financial statements of prior or
    earlier periods.
    Increases in the total net income,
    decreases in the total liabilities or
    increases in total assets are possible
    indicators that could be used by the
    entity.
    This kind of comparison will point out
    the areas for improvements and may be
    used as performance evaluation tools for
    employees
    Example:
    a. The net income of ABC Company for
    current year 2016 is compared with the
    total net income of ABC Company in
    2015.

    b. The total assets of DEF Company for


    the current year 2016 is com- pared
    with the total assets of DEF Company in
    Intercomparabi
    lity
    On the other hand, intercomparability
    deals with the comparative analysis of the
    company’s financial statements against a
    direct competitor.
    This is a very valuable tool especially
    for companies that do not have the
    monopoly of the market.
    More than anything else, the
    direct competitor’s financial
    statements could show if our entity
    underperformed or overachieved in
    the recently concluded accounting
    period.
    Example:
    a. The financial statements of Smart
    Telecom are compared with the
    financial statements of Globe
    Telecom.

    b. The financial statements of


    McDonald’s Restaurant are
    compared with the financial
    statements of Jolibee Restaurant.
    Industry
    standards
    In an open market industry where there
    are many players involved, it would be
    more prudent for some to compare their
    company’s financial statements with the
    standard average for that certain industry.
    This would also apprise the
    company on where it stands
    financially in that certain industry.
    Example
    a. The financial statements of Smart
    Telecom are compared with the
    industry standards of the telecom
    industry.

    b. The financial statements of


    McDonald’s Restaurant are
    compared with the industry
    Thankyou
    for
    listening!

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy