Financial statements must include 'comparative figures'. What does this mean, and can a company change these comparative figures in the following year? Discuss in detail.(5 marks)

A junior accountant has queried why the P&L does not show all of the expenses from the trial balance - provide advice to the junior accountant about the notions of 'materiality' and the 'true and fair view' and how they relate to the preparation of the P&L.(3 marks)