Accounting 101 - Consistency accounting principle

The consistency accounting principle: achieving a high level of performance which does not vary greatly in quality over time. Transactions and valuation methods are treated the same way from year to year. You can’t just jump back and forth between different methods of recording significant transactions. You need to apply consistency of method, so the financial statements are comparable year over year. That doesn’t mean you can NEVER change your approach, but only when you have a solid reason to do so. Philip de Vroe (The Finance Storyteller) aims to make accounting, finance and investing enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better investing decisions. Philip delivers #financetraining in various formats: YouTube videos, livestreams, classroom sessions, and webinars. Connect with me through Linked In! Want to get access to bonus content, and/or express your gratitude by buying me a cup of tea? Join my channel as a member through https://www.youtube.com/channel/UCQQJnyU8fALcOqqpyyIN4sg/join