Consistency accounting principle

The consistency accounting principle: achieving a high level of performance which does not vary greatly in quality over time. Transactions and valuation methods are treated the same way from year to year.

You can’t just jump back and forth between different methods of recording significant transactions. You need to apply consistency of method, so the financial statements are comparable year over year. That doesn’t mean you can NEVER change your approach, but only when you have a solid reason to do so.

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