Comparability
From ACT Wiki
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.
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
