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It compares people of the same age or age category and assumes that IQ is normally distributed, that the average (mean) is 100 and that the standard deviation is something like 15 (IQ tests sometimes differ in their standard deviations).
When it comes to the average IQ, it usually tends to range between 85 and 115 and it varies greatly from one country to another. The chronological age and the mental age of the subject can also determine the average intelligence for a particular person, given the fact that this is highly individual. 1. Children and teenagers display different signs of low IQ than adults do, and that is a known fact.