Corresponding figures
It is common practice for annual accounts of all organizations to provide, in parentheses or otherwise, corresponding or comparative figures for the previous year. Provision of such comparative figures is obligatory in the case of companies. This was laid down in the 1948 Companies Act and reinforced by the Corapanies Acts 1981 and 1985. It applies even where there is no current figure. The method of calculating the current amount should be recalculated on a new basis with the reason for the adjustment being given. the reason for the adjustment being given. figures extend to the notes to the accounts, with certain limited exceptions[Finansleksikon]. The nature of the comparative information presented in the entity's financial statements is governed by the requirements of the relevant financial reporting framework. The two approaches to the reporting responsibilities of an auditor in respect of comparative information include Corresponding figures and Comparative financial statements. The approach which needs to be adopted by an auditor is often stipulated by regulation or law. However, it might also be prescribed in terms of engagement. The critical audit reporting differences between the approaches are: In the case of corresponding figures, only the current period is referred for the auditor's opinion on financial statements; whereas. In comparative financial statements, each period for which such financial statements are presented is referred to the auditor’s opinion. The objectives of the auditor are: To obtain sufficient appropriate audit evidence about whether the comparative information included in the financial statements has been presented, in all material respects, by the requirements for comparative information in the applicable financial reporting framework To report by the auditor’s reporting responsibilities. An auditor should consider whether financial statements comprise comparative information, which is required by relevant financial reporting framework, and whether the required information is classified appropriately. For this purpose, an auditor should assess whether: The comparative information agrees with amounts and other disclosures provided in the prior period.
The accounting policies reflected in comparative information are in-line with the ones applied currently or, in case there have been changes in the accounting policies, whether the same is accounted for adequately and appropriately presented and disclosed. The accounting policies reflected in comparative information are in-line with the ones applied currently or, in case there have been changes in the accounting policies, whether the same are accounted for adequately and appropriately presented and disclosed[SA 710 Comparative Information– Corresponding Figures And Comparative Financial Statements].
Corresponding figures. Finansleksikon. Retrieved from: https://finansleksikon.no/en/eng-accounting/c/corresponding-figures
ClearTax. SA 710 Comparative Information– Corresponding Figures And Comparative Financial Statements. Retrieved from: https://cleartax.in/s/sa-710-comparative-information-corresponding-figures-and-comparative-financial-statements