Convention of Consistency

Convention of consistency signifies that the use of same accounting techniques for assembling financial statement in different years. When we use same accounting methods, it is easy for us to compare the financial statements of different years. In other words,Convention of Consistency means the accounting practice should stay the same from one period to another.

Accounting Conventions

Accounting Conventions Learning Objectives: What are accounting conventions? Explain important accounting conventions. The term “conventions” includes those customs or traditions which guide the accountants while preparing the accounting statements. The following are the important accounting conventions. Convention of Disclosure Convention of Materiality Convention of