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Types of Accounts

A firm follow...

Question

A firm follows a practice of giving the figures of the previous year along with the figures for the current year. Now the accountant of the firm wants to discontinue this practice. Do you justify this decision?

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Solution

No, comparability of current year figures with that of previous year is a qualitative characteristic of financial information. Discontinuation of this practice will result in discontinuation of good practice being followed by the firm.

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