Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 40)

What is the main goal of the consistency principle?

To ensure that different accounting methods are used each year.

To ensure that the same accounting methods are applied to similar items each accounting period.

To ensure that financial statements always reflect the current market value.

To eliminate all variations in accounting practices between companies.

The consistency principle requires using the same accounting treatment for similar items from one accounting period to the next.