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consistency definition. A quality of accounting information that facilitates comparing a company's reporting of one accounting period to another. For example, the reader of a company's financial statements can assume that the company is using the same inventory cost flow assumption this period as it used last period or last year.What is the principle of consistency?
What is the Consistency Principle? Consistency Principle states that all accounting treatments should be followed consistently throughout the current and future period unless required by law to change or the change gives a better presentation in accounts.What is a good accounting principle?
Principle of Periodicity: Reporting of revenues is divided by standard accounting periods, such as fiscal quarters or fiscal years. Principle of Materiality: Financial reports fully disclose the organization's monetary situation. Principle of Utmost Good Faith: All involved parties are assumed to be acting honestly.What is the consistency concept?
The concept of consistency means that accounting methods once adopted must be applied consistently in future. Also same methods and techniques must be used for similar situations. It implies that a business must refrain from changing its accounting policy unless on reasonable grounds.