Accounting framework - convention of consistency, Financial Management

Assignment Help:

Accounting Framework  - Convention of Consistency

This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies that these should not be changed from year to year or one year to another. Consistency could be in addition sub-divided into subsequent categories

(a) Vertical Consistency: Where the similar principle methods, practices are adopted inside interrelated financial statements of the similar date.

(b) Horizontal Consistency: It helps to make proper comparison of the operations of a company from one period to another.

(c) Third Dimensional Consistency:  It helps to make a proper comparison of the operation among two firms with the similar industry.

It should be remembered that the doctrine of consistency does not preclude changes as long as of these changes are desirable and the effects of theme are made known.


Related Discussions:- Accounting framework - convention of consistency

Opposite project - net present value, A company has the opportunity to sell...

A company has the opportunity to sell an old machine. The machine is fully depreciated to a zero book value but could be sold for $5,000. If the company did not sell the machine, i

Conservative approach of financial management, Q. Conservative Approach of ...

Q. Conservative Approach of Financial Management? An exact matching plan may not be followed in practice. A firm may adopt a conservative approach in financing its current and

Current assets management, how is operating cycle applicable to poultrybusi...

how is operating cycle applicable to poultrybusiness in Uganda (broilers)

Dual aspect concept - accounting principle, Dual Aspect Concept - Accountin...

Dual Aspect Concept - Accounting Principle This is, no doubt, the basic concept in accounting.  Under this concept, each transaction has got a two-fold aspect: (i) yielding

OPERATING CYCLE, Discuss the applicability of an operating in vegetable gro...

Discuss the applicability of an operating in vegetable growing business in Uganda.

Basic concepts of assessing trading strategies, Leveraging can be described...

Leveraging can be described as an investing principle where borrowed funds are invested in a part of the securities. Leveraging can magnify either returns o

Payback period and irr, To look into the feasibility of a new production sy...

To look into the feasibility of a new production system, K-Pad, the largest P.C. producer in the region, has spent $88,000 on the technical feasibility study. In view of the favora

Determine the term- component cost and composite cost, Determine the term- ...

Determine the term- Component Cost and Composite Cost A company may contemplate to raise desired amount of funds by different sources comprising preferred stock, debentures and

Define a callable bond, What is a callable bond?  What is a putable bond?  ...

What is a callable bond?  What is a putable bond?  How do each of these features affect their respective market interest rates? A callable bond may be retired untimely at the dis

Calculate average amount of working capital required, X & Y is desirous to ...

X & Y is desirous to purchase a business and has consulted you, and one point on which you are asked to advice them, is the average amount of working capital which will be required

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd