Business, Legal & Accounting Glossary

Definition: Comparability


Quick Summary of Comparability

Qualitative characteristic expected in financial statements, comparable within company and between companies.

What is the dictionary definition of Comparability?

Dictionary Definition

  1. mathematics The condition of related objects.
  2. Comparison or equivalence.

Full Definition of Comparability

In accounting, comparability points toward the ability of users of financial statements to compare companies. It follows that companies of a similar nature are better compared to each other through their financial statements. Thus, the convention of comparability increases the usefulness of the financial statements. Users may compare financial data from company to company by, for example, benchmarking several companies against industry trends or in many cases by deriving an industry trend from a collection of similar companies’ financials themselves. Further utility is derived from the fact that such sets of data may be compared over time to track and gauge a company’s historical performance. The FASB directs a great deal of effort toward setting accounting standards that standardize the items included for specific industries and accounting situations in order to promote usefulness through comparablity.

Synonyms For Comparability

comparison, compare, equivalence, correspondence, comparable

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Comparability. Payroll & Accounting Heaven Ltd.
August 16, 2022
Chicago Manual of Style (CMS):
Comparability. Payroll & Accounting Heaven Ltd. (accessed: August 16, 2022).
American Psychological Association (APA):
Comparability. Retrieved August 16, 2022
, from website:

Definition Sources

Definitions for Comparability are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 18th April, 2020 | 0 Views.