Daily Archives: June 30, 2021

When entities use consistent accounting methods and principles, users can more easily identify trends, changes, and anomalies in an entity’s financial position and performance. The consistency principle is a fundamental accounting concept that requires a company to use the same accounting methods and procedures from one accounting period to the next. This ensures that a […]

A telling indicator of such a situation is when the underlying company operational activity levels do not change, but profits suddenly increase. Overall, the consistency principle is important in accounting because it promotes accuracy, comparability, transparency, and reliability in financial reporting. In addition, this concept, the consistency principle, is also quite important for users of […]