ECONOMICS

Detailed explanation-1: -Consistency concept states that accounting procedures and practices should remain same from year to year. Consistency requires that a company’s financial statements follow the same accounting principles, methods, practices and procedures from one accounting period to the next.

Detailed explanation-2: -The consistency principle states that business should maintain the same accounting methods or principles throughout the accounting periods, so that users of the financial statements or information are able to make meaningful conclusions from the data.

Detailed explanation-3: -Principle of Consistency Accountants commit to applying the same standards throughout the reporting process, from one period to the next, to ensure financial comparability between periods.

Detailed explanation-4: -The consistency principle states that once a business chooses one accounting method, this method should be used consistently going forward. For example, if you use the cash basis of accounting this should be applied to your cash flow statement, balance sheet, and income statement.

Detailed explanation-5: -Meaning of consistency concept in English According to the consistency concept, once a business has decided on a particular method for treating an accounting item, it will treat all similar items in the same way in the future.