Comparability of economic and financial data in the theory and practice of financial analysis

Purpose:The aim of this article is to provide an overview of the distortions in the comparability of economic and financial data that may occur in the course of economic analyses.Design/methodology/approach: The theoretical considerations presented in this publication are based on a critical analysis of the financial analysis literature.The problems presented are supported by numerous empirical examples (case studies).Findings: A properly prepared economic and financial analysis is most often based on a comparative analysis of the financial data under consideration.When conducting such an analysis, however, it should be taken into account that the data used in it may not be comparable.The ability to identify distortions (from different areas) may, nevertheless, allow correct conclusions to be drawn regarding the economic condition of the analysed economic entity.Originality/value: The originality of this publication results from the multi-faceted approach to the issue of economic analysis.The considerations combine aspects of accounting, finance or legal issues.In addition, both micro-and macroeconomic aspects are included in the course of the argument.