Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 13)
Which of the following situations are impacted by the principle of consistency?
Changing depreciation methods from straight-line to declining balance in the current year
Using different inventory valuation methods for different product lines within the same year
Using the same depreciation method as in the previous year
Using a different inventory valuation method than the previous year
Explication
The principle of consistency states the use of the same accounting method from one period to the next.