Identify and explain at least 3 benefits for users of the comparative financial statements compared to single year financial statements.

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:
9781337912020

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