Both GAAP and IFRS require that firms provide balance sheets and income statements from at least 2 years in annual financial reports. Why would the comparative financial statements be required? Identify and explain at least 3 benefits for users of the comparative financial statements compared to single year financial statements.
Ref of the textbook (the main reference): Warren, C. S., & Tayler, W. B. (2020). Managerial accounting (15th ed.). Boston, MA: Cengage Learning. ISBN: