Business, Legal & Accounting Glossary
The measurement and display of similar transactions and other events is carried out in a consistent way throughout an entity within each accounting period and from one period to the next, and also in a consistent way by different entities.
Consistency is an accounting principle which stipulates that, except as otherwise disclosed in the financial statement, the same accounting policies and procedures have been followed as have been followed in previous reporting periods with respect to the preparation and presentation of its financial statements. The main thrust of this policy is to offer maximum value to the users of the financial statements, stakeholders such as investors and creditors to the issuers of the financial statements. The main argument against this accounting principle stems from management which often is of the position that a move away from the principle can at times provide a more meaningful representation of the reporting body’s actual performance and management objectives.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Consistency are sourced/syndicated and enhanced from:
This glossary post was last updated: 18th April, 2020 | 92 Views.