Comparability

1. Financial reporting - conceptual framework.

In financial reporting, information is more useful if it can be compared with:

• Similar information about other entities, and
• Similar information about the same entity for another period, or at another date.

Comparability enables users to identify and understand similarities in - and differences between - items.

In financial reporting under the conceptual framework, comparability is considered to be one of the "enhancing" qualitative characteristics, that further improves the usefulness of financial information that has already achieved both of the fundamental qualitative characteristics of being relevant and faithfully represented.

2. Financial markets - other contexts.

Similar characteristics of information in financial markets more broadly, and other contexts.

Financial measures designed to improve comparability include effective annual rates.

See also

• Accounting concepts
• Conceptual framework
• Effective annual rate
• Faithful representation
• Financial reporting
• International Accounting Standards
• International Accounting Standards Board (IASB)
• International Financial Reporting Standards (IFRS)
• Neutrality
• Prudence
• Qualitative characteristics of useful financial information
• Relevance
• Substance over form
• Timeliness
• True and fair view
• Understandability
• Useful financial information
• Verifiability

Other resources

• Conceptual framework for financial reporting - IAS Plus
• IFRS Conceptual Framework 2018