What is a comparative income statement?

A comparative income statement is a multi-column income statement, where the results of multiple accounting periods are shown in separate columns. The intent of this format is to allow the reader to compare the results of multiple historical periods, thereby giving a view of how the business is performing over time.

The most common presentation format for a comparative income statement is to show the results of the most recent accounting period in the column immediately adjacent to the row titles, while the results of earlier periods are shown progressively further to the right.

An example of this format for a multi-month presentation is March | February | January.

An alternative presentation format is the reverse, where the results of the most recent period are listed furthest to the right. However, this is a less usable format, since if many columns are used, the reader cannot easily associate the line descriptions on the far left side of the presentation with the most recent financial results listed on the far right side.

An example of this format for a multi-month presentation is January | February | March.

Related Topics

Condensed income statement
Contribution margin income statement
Multi step income statement
Single step income statement
What is a cash basis income statement?
What is a partial income statement?