Consistent use of accounting methods over a span of time is an important quality that makes accounting numbers more useful.
APB Opinion No. 20 states that in the preparation of financial statements there is a presumption that an accounting principle once adopted should not be changed in accounting for events and transactions of a similar type. Consistent use of accounting principles from one accounting period to another enhances the utility of financial statements to users by facilitating analysis and understanding of comparative accounting data (paragraph 15.)
Consistent use of accounting principles
one accounting period to another, if pushed too far, can inhibit
progress. No change to a preferred accounting method can be made
without sacrificing consistency, yet there is no way that accounting
develop without change. (Concepts Statement No. 2, paragraph 12)
the narrowness of the statistical dispersion of the measurements of an attribute when made by different measures.
(Hendriksen, Accounting Theory, 4th edition)
(Paton and Littleton, An introduction to Corporate Accounting Standards.)
|The full disclosure principle
means that the financial reports should include any information that
could affect the decisions made by the external users. However, the
benefits (relevance) of the information should exceed the costs of
providing the information.
(Spiceland, Intermediate Accounting, 3rd edition)
----------------Full Disclosure recognizes that the nature and amount of information included in financial reports reflects a series of judgmental trade-offs. These trade-offs strive for
(Keiso, Intermediate Accounting, 11th edition)
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