GAAP and IFRIS – Why would the comparative financial statements be required?
Both GAAP and IFRS require that firms provide balance sheets and income statements from at least 2 years in annual financial reports. Why would the comparative financial statements be required? Identify and explain at least 3 benefits or advantages for users of the comparative financial statements compared to single year financial statements.What are the disadvantages or limitations of performing a comparative financial statements analysis? how would the the two benefit from the analysis?