The National Directory of Certified Public Accountants

Ask A CPA - Bookkeeping & Write-up

What Is The Consistency Criterion ?

The consistency criterion states that the accounting procedures used at a given time should conform to the procedures previously used for that activity. Such consistency allows data of different periods to be compared. This is important for comparative financial statements such as the income sheet, balance sheet and cash flow statement. If there is a change in the consistency or accounting methods, the financial statements have to be restated for consistency purposes.

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