Consistency with reference to application of accounting procedures means
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In accounting, consistency requires that a company's financial statements follow the same accounting principles, methods, practices and procedures from one accounting period to the next. ... However, the change and its effects must be clearly disclosed for the benefit of the readers of the financial statements.
In accounting, consistency requires that a company's financial statements follow the same accounting principles, methods, practices and procedures from one accounting period to the next. ... However, the change and its effects must be clearly disclosed for the benefit of the readers of the financial statements.
The accounting information provided by the financial statements would be useful in drawing conclusions regarding the working of an enterprise, only when it allows comparisons over a period of time, as well as, with the working of other enterprises.
Thus, both inter-firm and inter-period comparisons are required to be made. This can be possible only when accounting policies and practices followed by enterprises are uniform and are consistent over the period of time.