What Is Consistency In Accounting?

The Consistency Concept states that accounting methods used by the business should be kept the same from one period to the next. This assureds that the owner can be confident that the changes reflect the business performance, not simply changes in accounting methods.

The Going Concern Concept assumes that the life of the business is continuous and its records are kept on the basis.

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Going Concern concept
This is the assumption that the owners of the business has no intention to liquidate the business, and that the business will continue trading for a forseable future.

Consistency

This rule states that a business must adopt one method of presenting its financial information and stick to it  and should not change this method without any valid reason.

When a business concern uses a certain method for accounting treatment of an item, for the year concerned, it should apply the same method of treatment of the same item for other ensuing accounting periods.