What do you mean by consistency?
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
The consistency assumption holds that accounting procedures and practices being followed shall remain the same year after year. The assumption helps in better understanding of accounts, as the results thereof remain comparable. If the practices followed do not remain consistent, the results of one year shall not remain comparable with that of another year.
For example, stocks valued at cost prices in one year and valued at market price in the following year will give a distorted picture of financial results.
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