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The Consistency Principle

The consistency principle states that, once you adopt an accounting principle or method, you should continue to follow it consistently in future accounting periods. You should only change an accounting principle or method if the new version in some way improves reported financial results. if you make such a change, you should fully document its effects, and include this documentation in the notes accompanying the financial statements.

Similar Terms

The consistency principle is also known as the consistency concept.

Related Topics

Accrual principle
Conservatism principle
Cost principle
Economic entity principle
Full disclosure principle
Going concern principle
Matching principle
Materiality principle
Monetary unit principle
Reliability principle
Revenue recognition principle
Time period principle
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