The Consistency Concept

Accounting is not an exact science. There are certain procedures and principles that are recognised as good practice, but within these limits, there are often various acceptable methods of accounting for similar items. To make things comparable, the consistency concept just means that you treat similar items in a similar way and that the same treatment should be applied from one period to another.

This means that when people look at your accounts, they can confidently compare previous months or year’s results.

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