Question

Exception to consitency principles is

Answer 1

Answer:

Consistency refers to a company's use of accounting principles over time. When accounting principles allow choice between multiple methods, a company should apply the same accounting method over time or disclose its change in accounting method in the footnotes to the financial statements

There are two exceptions that permit companies to modify basic accounting principles (e.g., cost, full disclosure, matching):

-Materiality

-Conservatism

Materiality and conservatism could also be considered accounting conventions.

Accounting conventions are different from accounting concepts: while accounting concepts are established by pronouncements (e.g., U.S. GAAP), accounting conventions are established by common accounting practices.