Consistency concept including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Consistency concept can be defined as: Principle that prescribes use of the same accounting method(s) activities under the parents control, including thos of any subsidiaries. Consistency principle basically means that, all ells equal, we should apply estimates and methods consistently. Consistency principle leads to better comparability of financial statement. Consistency principle means that the way we calculate estimate for one period should be the same as the next. For example, if we are using straight line depreciation this year it would be a violation of the consistency principle to move to double declining balance in year the next year.
