The preparation and analysis of comparative statement of financial position and statements of comprehensive income are commonly applied tools of financial statement analysis and interpretation. a) Discuss the inherent limitations of analysing and interpreting financial statements for a single year Include in your discussion the use of comparative extent that these limitations are overcome financial statements computed over more than one year. [10 Marks b) A year-to-year analysis of comparative balance sheets and income statements is useful analysis tool. However, without proper care, such analysis can be misleading. Discuss factors or conditions that contribute to such a possibility and how additional information and supplementary data (beyond financial statements) help prevent this possibility. [15 Marks]