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Consistency Principles

  • According to this principle, the accounting policies, assumption, concepts used in accounting should not change form period to period.
  • This enable the accountant to compare the results among different accounting period.
  • For e.g.. Depreciation can be provided in different methods such as Straight line method or Written down value method etc., whichever method is applied it should be followed consistently.
  • This principle does not prohibits the change in accounting policy/method. In case of changes in any accounting policy/methods it should be clearly disclosed in the financial statement in the form of foot notes.

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