- It is Process of Equivalisation
- In this statement result will be showed in terms of PERCENTAGE
- All the Data Items in the statment will compare with one Data Item considering it as BASE DATA ITEM., and result will display interms of percentage
Ex:In Balance sheet all the data items will compare with ASSETS., ASSET is BASE ITEM
Ex:In Income Statement all the data items will compare with Net Sales., which is a BASE ITEM
- This process having equivalent status with VERTICAL ANALYSIS