The differences in presentation requirements described and illustrated here effectively preclude meaningful presentations of comparative financial statements
on a liquidation basis in traditional columnar form with those of preliquidation periods prepared on a going-concern basis.
Presentation of comparative financial statements
have been adjusted retrospectively.
Publicly Accountable Enterprises (PAE's) are expected to soon publish their first comparative financial statements
(including quarterly statements) based on International Financial Reporting Standards (IFRS) accounting.
21 Assumptions: Assumptions: Comparative Financial Statements Comparative Financial Statements
Prepared in Accordance with Prepared in Accordance with Accounting Principles Generally Accounting Principles Generally Accepted in the United States of Accepted in the United States of America America Accountant's Compilation Report [Appropriate Salutation] I (we) have compiled the Management is responsible for the accompanying balance sheets of accompanying financial statements XYZ Company as of December 31, of XYZ Company, which comprise 20X2 and 20X1, and the related the balance sheets as of December statements of income, retained 31, 20X2 and 20X1, and the earnings, and cash flows for the related statements of income, years then ended.
Comparative financial statements
for 2012 were restated to reflect the change.
The ED proposes a modified retrospective treatment, which would mean that the financial statements for all periods presented, for entities that present comparative financial statements
, would be adjusted to present the new treatment of leases.
Consequently, the date of transition to IFRS depends on two factors: first, the year of adoption of IFRS, and second, the number of years of comparative financial statements
that the entity decides (or is required) to present along with the financial statements for the first IFRS reporting period.
Learning Objective 1 * To define "comparative financial statements
" and conduct a horizontal analysis and trend analysis.
2, Reporting on Comparative Financial Statements
(AICPA, Professional Standards, vol.
Must management provide a new representation letter on prior period comparative financial statements
when a representation letter was provided last year on those financial statements?