Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 25

Consistency means the company uses the same accounting treatment for the same type of accounting transactions — both within a certain financial period and among various financial periods. Doing so allows the user to know that the financial accountant is not doing the accounting equivalent of comparing a dog to a cat. Both are animals, both are furry, but as any pet owner knows, you have a basic lack of consistency between the two.

Keep in mind that a company is allowed to switch accounting methods if it has a valid business purpose for the switch; the company isn’t stuck using only one method throughout its existence. An example of a good reason for a switch in methods is if using a different accounting method presents a more accurate financial picture. But a change in methods can’t be done willy-nilly whenever the business feels like it. I provide the whole scoop on changes in accounting treatment in Chapter 20. Also, the company has to disclose this change in its footnotes to the financial statements; see Chapter 15.