Explain Why Comparability and Consistency Are Considerations for Accounting Changes

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The Answer is Comparability is an enhancing qualitative characteristic in the accounting conceptual framework and it enhances the usefulness of relevant and faithfully representative accounting information. Consistency refers to using the same accounting methods from year to year. When a company changes methods, comparability becomes difficult because there is not a consistent application of principles. Changes in accounting principles should be infrequent and adequately disclosed so that readers understand the implications of the changes for all years presented.

Explain Why Comparability and Consistency Are Considerations for Accounting Changes

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Explain Why Comparability and Consistency Are Considerations for Accounting Changes

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