Post by account_disabled on Mar 14, 2024 5:51:55 GMT 1
Performance in the past period, and what its future prospects are. For vertical analysis, examples can be taken, for example comparing one post with another in a financial report. Vertical analysis is static, the results obtained from the review only show performance in a certain period without knowing its development. Also read: Types of Economic Actors in a Country's Economic System Technical Application of Comparative Analysis Technical Application of Comparative Analysis illustration of comparative analysis. source envato In applying comparative analysis, the first step that must be taken is to collect financial reports for two or more years. Once the material to be compared is complete, then enter the calculation stage.
Every change that occurs from year to year is calculated, both in rupiah and percentage form. In comparing financial statements, intangible assets such as patents and deferred costs are generally not included. Why? Because each Bulk Lead company has its own characteristics regarding these assets. Next, proceed to the data sources used, this depends on the purpose of the analysis. The data source can come from financial reports for one company in several periods, or financial reports from several companies in the same period. It should be noted that when making comparisons we must have a comparison standard. Make sure that the financial reports being compared use the same preparation standards, the size of the companies that are the object of comparison should not be unequal, and the periods being compared must be equivalent.
Also read: Understanding Assets: Types, Classification, and Various Properties You Should Know Benefits of Conducting Comparative Analysis for Business Actors Benefits of Conducting Comparative Analysis for Business Actors illustration of comparative analysis. source envato The results of comparative analysis can be taken into consideration when investors want to invest their funds in a company. Before deciding to invest, potential investors need to consider carefully and take into account future prospects. For you company owners, through comparison results you can obtain valid data regarding changes that occur in financial report items. Comparative analysis in accounting provides a variety of very important benefits for business actors, both business owners, managers and investors.
Every change that occurs from year to year is calculated, both in rupiah and percentage form. In comparing financial statements, intangible assets such as patents and deferred costs are generally not included. Why? Because each Bulk Lead company has its own characteristics regarding these assets. Next, proceed to the data sources used, this depends on the purpose of the analysis. The data source can come from financial reports for one company in several periods, or financial reports from several companies in the same period. It should be noted that when making comparisons we must have a comparison standard. Make sure that the financial reports being compared use the same preparation standards, the size of the companies that are the object of comparison should not be unequal, and the periods being compared must be equivalent.
Also read: Understanding Assets: Types, Classification, and Various Properties You Should Know Benefits of Conducting Comparative Analysis for Business Actors Benefits of Conducting Comparative Analysis for Business Actors illustration of comparative analysis. source envato The results of comparative analysis can be taken into consideration when investors want to invest their funds in a company. Before deciding to invest, potential investors need to consider carefully and take into account future prospects. For you company owners, through comparison results you can obtain valid data regarding changes that occur in financial report items. Comparative analysis in accounting provides a variety of very important benefits for business actors, both business owners, managers and investors.