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#cfa-level-1 #reading-22-financial-statement-analysis-intro
Comparability occurs when different companies’ information is measured and reported in a similar manner over time. Comparability helps
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3.1.5. Financial Notes and Supplementary Schedules
ironment of the company’s business and industry. Flexibility can, however, create challenges for the analyst because the use of different policies, methods, and estimates reduces comparability across different companies’ financial statements. <span>Comparability occurs when different companies’ information is measured and reported in a similar manner over time. Comparability helps the analyst identify and analyze the real economic differences across companies, rather than differences that arise solely from different accounting choices. Because comparability of fi


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