Consistency: Difference between revisions
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1. ''Financial reporting - accounting concepts.'' | |||
One of a small number of fundamental accounting concepts. | One of a small number of fundamental accounting concepts. | ||
Consistency requires that like items be treated consistently within each accounting period and between accounting periods. | Consistency requires that like items be treated consistently within each accounting period and between accounting periods. | ||
This helps to ensure that financial information is comparable over time. | |||
2. ''Cohesion - trust - comparability.'' | |||
The quality of being aligned with other relevant things, and free from logical contradictions. | |||
When statements are consistent with earlier and other statements, the level of trust toward the source of the statements increases. | |||
Stating amounts on a consistent basis, such as an effective annual rate, makes them comparable. | |||
== See also == | == See also == | ||
* [[Accounting concepts]] | * [[Accounting concepts]] | ||
* [[Accruals concept]] | * [[Accruals concept]] | ||
* [[Cohesion]] | |||
* [[Confidence]] | |||
* [[Disaggregation]] | * [[Disaggregation]] | ||
* [[Double entry]] | |||
* [[Double entry bookkeeping]] | |||
* [[Effective annual rate]] (EAR) | |||
* [[Goal congruence]] | |||
* [[Going concern]] | * [[Going concern]] | ||
* [[Integration]] | |||
* [[Journal]] | |||
* [[Ledger]] | |||
* [[Prudence]] | * [[Prudence]] | ||
* [[Trust]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 07:16, 25 July 2022
1. Financial reporting - accounting concepts.
One of a small number of fundamental accounting concepts.
Consistency requires that like items be treated consistently within each accounting period and between accounting periods.
This helps to ensure that financial information is comparable over time.
2. Cohesion - trust - comparability.
The quality of being aligned with other relevant things, and free from logical contradictions.
When statements are consistent with earlier and other statements, the level of trust toward the source of the statements increases.
Stating amounts on a consistent basis, such as an effective annual rate, makes them comparable.
