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information
often
revealed
from comparative
financial
statement
analysis
is
trend.
A
comparison of statements over several periods can reveal the direction, speed, and extent
of a trend. Comparative financial statement analysis also referred to as horizontal
analysis given the left-right analysis of account balances.
This method used by using the figures in the financial statement and compares it with
other financial statement. The comparison conducted
by comparing the financial
statement with (Harahap, 2006, p.217):
1. Comparing
between
financial
years,
for
example
financial
statement
of
2005
compared with financial statement of 2006.
2. Comparison of one financial year by comparing the
elements
of
financial
statement
3. Compare the financial statement with the best company in the industry.
4. Compare the financial statement with the industry standard.
5. Compare the financial statement with the budget of the company.
2.3.2 Common-size Financial Statement analysis
Common-size
financial
statement
analysis
or also
known
as
vertical
analysis
is
an
analysis
method that presenting
financial statement
in the
form of percentage. Normally
the
percentage
connected
with important
figure
in
the
financial
statement,
for
example
total asset figure in the balance sheet.
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