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COMPARATIVE STATEMENT COMMON-SIZE STATEMENT (Horizontal Analysis) (Vertical Analysis) (1) It shows figures for successive years side by side, along with the amount of change and percentage of change. (1) It shows figures for the same year in the form of percentages of some base figure. (2) Comparison is made between the figures of the current year or successive years with those of a base year. (2) Comparison is made between the figures of the same year. (3) It is a horizontal analysis because the comparisons made are on a horizontal plane from left to right. (3) It is a vertical analysis because the comparisons are made vertically from top to bottom for an analysis of the component changes that occur from year to year with certain base figure within those years. (4) Comparison is made both in absolute figures & percentages. (4) Compariosn is always made in percentage form. (5) It is used for both inter-firm and intra-firm comparison. (5) It is mainly used for inter-firm comparison. (6) It fails to show the relative importance of individual figures in a statement. (6) It shows the relative importance of each individual figure in a statement.

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Q: What is the difference between comparative and common size statements?
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