Question

1. How many periods should be shown in a complete set of financial statements?

Answer 1

Ans) A Business Enterprise while making their financial statements should consider transactions related to the company for at least the whole annual year. That should be the minimum requirement for presenting the financial statements from the time period point of view.

They should also mention in the presentation, the comparative amounts from the preceding years in order to compare any increase or decrease in the assets or liabilities. Some business enterprises, do follow preparing Consolidated Balance Sheet, where the financial statement is made considering two annual years (current & previous).