Abstract From the financial analyst's point of view an increase in corporate revenues, over a period of time, is generally considered to be a healthy trend. This is important information for anyone interested in the economic condition and progress of a company. Financial analysts need a point of reference. They need comparative financial statements. Fiction in sales reporting is used to mean the false impression that is gained from some of today's reporting practices. This article will be concerned with three types of situations that may lead to non-comparable, and therefore misleading financial statements namely Non-comparable organizations, Non-comparable time periods and Non-comparable monetary units. It is important for accountants to present financial statements that are free of misleading implications than to be so technically precise that the real economic significance is lost. Comparative financial statements are valuable for estimating what will happen in the future by indicating a trend that can be extrapolated.