In: Business and Management

Submitted By irenethor
Words 340
Pages 2
Consistency definition:
The consistency principle states that, once accountants adopt an accounting principles, methods, practices, and procedures, continue to follow it consistently in future accounting periods. In other words, the readers of a company's financial statements can presume that the same rules and measurements were followed in all of the years being reported. If a change is made to a more preferred accounting method, the effects of the change must be clearly disclosed.
. Consistency examples: 1. Computer Company X has been using declining balance depreciation method for its computer equipment. The consistency principle states that, once accountants adopt declining balance depreciation method for its computer equipment, it should continue to use in future accounting period. If the company wants change the depreciation method from declining balance method to straight line method, it must show in its financial report, also show the reasons and the effects of the change. 2. Computer Company Z has been using First-in-First-out method (FIFO) for valued its own inventory. According to the consistency principle, once accountants adopt First-in-First-out method (FIFO) for valued its own inventory, it must continue to use in future accounting period. If the company wants to change the inventory valuation method from First-in-First-out method (FIFO) to Weighted Averaged method (WAC), it must provide a justifiable reason and the effect of the change.
Consistency usefulness:

Company B is a retailer dealing in shoes. It used first-in-first-out method of inventory valuation in respect of shoes at Branch X and weighted average inventory valuation method in respect…...

Similar Documents

Distributed Memory Management: Design Issues and Future Trends

...Distributed Memory Management: Design Issues and Future Trends Ehab S. Al-Shaer College of Computer Science Northeastern University Boston, MA 02115 March 19, 1993 ABSTRACT In recent times the shared memory paradigm has received considerable attention in the realm of distributed systems. Distributed Shared Memory (DSM) is the abstraction for supporting the notion of shared memory in a physically non-shared (distributed) architecture. Issues to be addressed in the design and implementation of DSM include maintaining the consistency of the shared data across the network without incurring high overhead and integrating the DSM mechanisms with the local memory management. The consistency model provided by a given DSM implementation attempts to balance performance and ease of programming: while DSM provides the abstraction of shared memory, it is not true shared memory - both from the point of view of the semantics and the cost of shared memory access. The focus of this paper is to identify the issues involved in the design of DSM systems, briefly highlight the mechanisms in use by some current DSM implementations and propose some new DSM models for future distributed systems. I INTRODUCTION As computers become cheaper, there is increasing interest in using multiple CPUs to speed up individual applications. There are basically two design approaches to achieve this goal of high performance at low cost: multiprocessors and multicomputers. Multiprocessors......

Words: 7654 - Pages: 31

Attribute Theory

...How should Madam May May attribute Marcus’s performance? 2.0 Theory Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. Determination depends on 3 factors which are distinctiveness, consensus, and consistency. Distinctiveness is whether the observed person acts the same way in different types of situations. If the person being observed exhibits the same behavior in a variety of contexts, then distinctiveness is low; if they have different behavior depending on the context, then distinctiveness is high. Consensus is the degree to which other people, if in the same situation, would behave similarly to the person being observed. If the observer sees others acting the same way that the person being perceived acts, then consensus is high. However, if others behave differently in the type of situation, then consensus is low. Consistency describes whether the person being observed behaves the same way when faced with the same set of circumstances. If the person being observed acts the same way in the same type of situation, consistency is high; if they act differently each time, then consistency is low. 3.0 Integration Theory & Practice Madam May May assesses consensus, or the behavior of others in this similar task. She finds that other sales staff able to achieve their sales target in same situation. There was low consensus. So, she concludes that there was an internal......

Words: 441 - Pages: 2

Chapter 8

...for prior years, no comment as to consistency needs to be made in the CPA’s audit report. The comparability of the financial statements has been affected by a business transaction, but there has been no change in any accounting principle employed or in the method of its application. (The transaction would probably require informative disclosure in the financial statements). BRIEF EXERCISE 2-3 (continued) (c) If the company reduced the estimated remaining useful life of plant property because of obsolescence, the comparability of the financial statements has been affected. The change is not a matter of consistency; it is a change in accounting estimate required by altered conditions and involves no change in accounting principles employed or in their method of application. The change would probably be disclosed by a note in the financial statements. If commented upon in the CPA’s report, it would be as a matter of disclosure rather than consistency. (d) If the company is using a different inventory valuation method from all other companies in its industry, no comment as to consistency need be made in the CPA’s audit report. Consistency refers to a given company following consistent accounting principles from one period to another; it does not refer to a company following the same accounting principles as other companies in the same industry. BRIEF EXERCISE 2-4 (a) Verifiability (b) Comparability (c) Comparability (consistency) (d) Timeliness BRIEF......

Words: 1282 - Pages: 6


...will encourage the morale of the company. 2. What advice would you offer the staff to help them get their opinions heard in the current situation? I would tell the staff to keep going to Pete. If they can’t get him to listen, then they need to have a meeting with both Bruce and Pete. With both shareholders in the same meeting, one of them has to listen and get the other person on the same page. 3. Do you think continuity and consistency are important in a professional organization? Continuity and consistency are very important in a professional organization. Continuity is an activity performed on a daily basis to maintain service and consistency. Kamak has little continuity in the internal operations, which spilled over into the external image. Consistency is important, because it gives you the ability to measure performance. I don’t think I can go against continuity and consistency in an organization. Kamak didn’t have any consistency in the systems of their organization and that caused them to get behind the competition. Consistency allows you to get ahead of the competition. 4. What do you think should be the basic professional standards for organizational communication? I think the basic professional standards should be actually having communication. Kamak didn’t seem to have any type of communication. Information wasn’t reaching people in the field, employees couldn’t reach the director. When there is open communication with all employees from top......

Words: 508 - Pages: 3

Ia State Psychology Notes

...from which judgments are made by. Q. Anchoring and adjusting (Anchor=self) -all judgments can be said to have a starting point -Starting point tends to anchor judgments in the sense that adjustments from that point are commonly insufficient. R. Consistency and justification -as a need or drive -foot in the door effect -lowballing -psychological consistency- balance theory -logical consistency -dissonance theory S. Consistency -“a foolish consistency is the hob goblin of little minds” (Ralph Emmerson) -Consistency is the last refuge of the unimaginative (Michael Moncur) -People do not like inconstancy -Foot in the door effect -A small request is made something that most people will do -A larger request is made, is consistent with the nature of the smaller request -People tend to agree to the larger request due to consistency -Lowballing -Make a deal of some sort -raise the cost of completing the deal -Inter-attitudinal consistency (psychological balance) -Heider’s POX Theory -each corner of the triangle represents an object (Yourself,friend ,enemy ) -Positive or negative connection -physiological consistency among attitudes (Being comfortable with consistency and vice versa ) -Product of the connections is positive= balanced -Product of the connections is negative= unbalanced -Every POX triangle is connected -Problems with balanced theory: -Balanced theory works poorly when the relationships evokes......

Words: 1146 - Pages: 5

Assignmnet's effectiveness. Financial statements identify areas that need improvement and enable the boards to take early corrective actions. * c.Securities and Exchange Commission The U. S. Securities and Exchange Commission (SEC) has a three-part mission: Protect investors, Maintain fair, orderly, and efficient markets, and Facilitate capital formation. Q 1-2 How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied? The consistency concept—or consistency of presentation in financial accounting—is one of four fundamental assumptions of IAS 1 (International Accounting Standard 1), along with going concern, accruals and fair presentation. Consistency holds that accounting methods used in one accounting period should be the same as methods used for events/transactions, which are materially similar, in other periods. Consistency is necessary for comparison of results of one period with another period. However, there are unique circumstances in which entities can change methods and not follow the consistency concept, although there must be good reason for this.  Q 2-9 What are the three principal financial statements of a corporation? Briefly describe the purpose of each statement. The three main financial statements are: 1. The balance sheet—which reports a corporation's assets, liabilities, and stockholders' equity as of a point-in-time (e.g., as of midnight of......

Words: 512 - Pages: 3


...order to determine the weights and scores for the scoring model that has been described previously. Furthermore, this can be useful in discussing the vital aspects of problem in group discussion and decision making environments and in focusing attention. However, all the decision makers don’t accept this universally since with any decision making procedure, the entire case should be well contemplated and examined by the decision makers. Here are some steps to apply AHP to a particular case – Firstly, a pairwise comparison matrix is created for every alternative on each criterion. The next step is to normalize the matrix that we have created from the pairwise comparison matrix. After following the above procedure, we need to find the consistency and on the basis of comparison and ration we need to arrive at a final decision regarding this process. In this assignment, our team is going to take a case study based on the real life data and will apply AHP to this case to further evaluate the application of AHP and will arrive to a conclusion based on the outcome and preferences. Below is our scenario or the case study that we have taken into consideration. Scenario problem A restaurant named Take Thai Home is looking for a point of sale (POS) systems which fits their business in three criteria namely price, warranty and free training. They approached with these criteria to our consultancy and we gave them a choice of three POS systems which are Aloha, Squirrel and......

Words: 1219 - Pages: 5


...are becoming more and more expensive because of their increasing purposes. Our research aims to produce this ink as a cheaper alternative to those commercial ones. Compared to the ink we are aiming to create , commercially produced inks are toxic and can be hazardous to a person’s health once there is a inappropriate contact with it. To match with the color and consistency of other inks, we will be adding other substances, specially vinegar and cornstarch, which are common and easy to find. STATEMENT OF THE PROBLEM Generally, this investigatory project aims to find out if tea bags can be used to create an ink. Specifically,it aims to answer the following questions: 1.Can vinegar strengthen the color of the product, ink? 2.Can cornstarch contribute to achieving the right consistency of the ink? 3.Are the processes boiling and straining efficient in taking the extrct out of the tea bags? HYPOTHESIS OF THE STUDY Extracts taken from tea bags have the potential to be made into an ink. If vinegar and cornstarch are added to the mixture, then the product would have a stronger color and thicker consistency than to an ordinary ink. SIGNIFICANCE OF STUDY This imbestigatory project will benefit us by producing an alternative for other inks. This other manufactured inks nowadays come quite expensive prices, bit since the materials to be used in our project are common and easy to find , you will be spending less money. Also, no harmful chemical s......

Words: 1389 - Pages: 6

Miss M Mei

...2 THE PRACTICE OF FAMILY THERAPY Chapter 6: Psychodynamic Approaches   Ivan Boszormenyi-Nagy   Basic Concepts/Theoretical Constructs  Theory of Health/Normalcy   Therapeutic Strategies/Interventions   Systemic Consistency   Questions and Reflections from a Second-Order Cybernetics/Postmodern Perspective   Object Relations Family Therapy   Basic Concepts/Theoretical Constructs  Theory of Health/Normalcy   Therapeutic Strategies/Interventions   Systemic Consistency   Questions and Reflections from a Second-Order Cybernetics/Postmodern Perspective                        Chapter 7: Natural Systems Theory   Murray Bowen   Basic Concepts/Theoretical Constructs   Theory of Health/Normalcy   Therapeutic Strategies/Interventions   Systemic Consistency   Questions and Reflections from a Second-Order Cybernetics/Postmodern Perspective     Chapter 8: Experiential Approaches   Carl Whitaker   Basic Concepts/Theoretical Constructs   Theory of Health/Normalcy   Therapeutic Strategies/Interventions   Systemic Consistency   Questions and Reflections from a Second-Order Cybernetics/Postmodern Perspective   Walter Kempler   Basic Concepts/Theoretical Constructs   Theory of Health/Normalcy   Therapeutic Strategies/Interventions   Systemic Consistency   Questions and Reflections from a Second-Order Cybernetics/Postmodern Perspective     Chapter 9: Behavioral/Cognitive Approaches   Basic Concepts/Theoretical Constructs  Definitions  1. Classical......

Words: 954 - Pages: 4

Change & Consistency Within the Catholic Church: Slavery & Other Issues [ a Historical & Theological Approach]

...During this course on the history of Catholic Moral Theology, we have had to deal with the topic of what can and cannot change within the Catholic Church. This happened to be the title of the primary book that we used for this course. This book, by John T. Noonan, is entitled A Church That Can and Cannot Change: The Development of Catholic Moral Teaching. A theme which Noonan immediately focuses on throughout the book is one which touches many of us deeply, slavery. As a person who has studied both law and religion and who is now embarking on a study of moral theology & ethics, I was highly interested in reading what John T. Noonan a distinguished scholar -author and member of the U.S. Court of Appeals- had to say in such an arena. Having heard him lecture, I was interested to see how his viewpoint translated into this type of arena. I was not disappointed. Throughout our course we not only discussed how this work dealt with such a topic, but we also discussed our own viewpoints on this very topic. Within the following paper I will discuss the issue of slavery, in the form of a synthetic paper, and how not only how it has evolved, but also the various positions the church has had concerning such an issue. As a backdrop, I will also use what Noonan outlined in his book as well. Therefore, this paper will be in the form of a review of Noonan thoughts (which will utilize various points from my prior presentation on this topic)/synthetic paper on the issue of......

Words: 5751 - Pages: 24

Consistency Concept

...Consistency • Usefulness: The consistency principle is important because of the need for comparability, that is, it enables investors and other users of financial statements to easily, similar and correctly compare the financial statements of a company. • Limitation: The consistency principle is most frequently ignored when the managers of a business are trying to report more profits or revenues to avoid through a strict interpretation of the accounting standards. For instance when there is an underlying company operational activity levels do not change, but the profits suddenly increased. The calculation of cost is determined in large area by the accounting principles and the requirements of financial reporting. Example: Bobby's Computers, a computer retailer, has historically used FIFO for valuing its inventory. In the last few years, Bobby's business has become quite profitable and Bobby's accountant suggests that Bobby switch to the LIFO inventory system to minimize the taxable income. According to the consistency principle, Bobby can change the accounting methods for a justifiable reason for example like minimizing taxes is an acceptable reason is debatable. Assume Bobby's Computers switched from FIFO to LIFO in year 2. In year 3, Bobby's income is extremely loan and he is trying to show a profit to get another bank loan. Bobby asks his accountant to switch from LIFO back to FIFO. This is a violation of the consistency principle. Bobby can make...

Words: 380 - Pages: 2

An Examination of the Consistency and Uniqueness of the Ritual and Signature Serial Sexual Homicide

...!1 An Examination of the Consistency and Uniqueness of the Ritual and Signature Serial Sexual Homicide !2 Violence is such an appealing topic that it is embedded in some of the greatest paintings, music, dramas and movies. Not only being presented in art works, throughout human history, violence also serves as a means of entertainment to a certain group of people. Actually, among all species, human beings might be the only one that kills for fun. Mark Twain once wrote, “Of all the animals, man is the only one that is cruel. He is the only one that inflicts pain for the pleasure of doing it.” Certainly, we do not want to be around the sadists without knowing it; however, unlike the fairy tales, serial killers do not always look like devils; instead, they might be the most charming person one could ever encounter. Therefore, in order to track down the criminals hidden in the crowds, people need to know more about their motives and reasons behind the conduct. Despite that there is some randomness in killings, the study of the consistency and uniqueness of ritual (fantasy-driven but unnecessary for the perpetration of the homicide) and signature (distinct or unique ritualistic behavior) can help the police allocate the perpetrator much faster, because such demeanor makes the violence personal to the killers. The research done by Louis B. Schlesinger, Martin Kassen, V. Blair Mesa and Anthony J. Pinizzotto in 2010 was one of the first examinations of the......

Words: 962 - Pages: 4

Mother as Manager

... |Organisational commitment | | | |Leading |Consistency | | | | |Work dedication | | | | |Work motivation | | | | |Impression management | | | | |Assertiveness | | | | |Benchmarking | |0530-0600 Hrs |Going to temple and offering |Leading |Commitment | | |daily prayers |Controlling |Stress management | | | | |Job satisfaction | | | | |Consistency | | | | |Work......

Words: 991 - Pages: 4

Synergy, Coherence, and Consistency in Advertisements and the Vital Role They Play

...Synergy, Coherence, and Consistency in Advertisements and the Vital Role They Play By: Cameron Dailey (0399141) Date: February 17, 2012 Course: ADMN 3150 The advertising industry is a difficult market to define, some call it art and some call it a science, either way it comes down to effectively communicating ideas to customers. But how does one persuade potential customers to start buying, and current customers to continue buying a product or service? The answer depends on many things, and can change quickly, especially in today’s market place. Though the world is changing faster than ever, advertising must be able to be broken down to basic parts that are necessary for an ad campaigns success. Leo Burnett believed that advertisements should reflect the world around it, by using folklore he created famous ad campaigns such as The Jolly Green Giant, Tony the Tiger, and the Marlboro Man. Where Burnett often used created characters in his work, David Ogilvy believed in making the product the hero of the commercial. Obviously there are different points of views on what a successful ad campaign should look like, but they all share a certain characteristics. This paper intends to argue that concepts of consistency, coherence, and synergy are necessary for a successful advertisement. Consistency in advertising can mean many things, consistency from one ad to the next, consistency of employee and organizational value, and so own. Everything an organization does......

Words: 1130 - Pages: 5

Stability, Equivalence and Internal Consistency individual. Thus if there are differences in responses between students, but if they are classified the same the test is said to be of good equivalence (Cooper & Schindler, 2008). Thus the equivalent instrument should be good at knowing the differences between students of all the groups. Internal consistency is another approach to reliability that uses one administration of an instrument or test to earn the internal consistency among the items. Sometimes a split half technique is used if the tool used to measure has too many questions that are the same or statements that can obtain a response from the participant (Cooper & Schindler, 2008). Therefore, for internal consistency the instrument should be able to be used with many students, but each question would be individually analyzed by making sure that all the questions can measure the same factors. I would use the instrument with a large group of students and analyze the individual questions. For perfect internal consistency. This would be accomplished by separating the results into two halves and then correlated. If the correlation is good then we would know that there is internal consistency (Cooper & Schindler, 2008). Content validity is a measurement instrument that has good coverage of the investigative questions within the study by providing a large sample of the subject that is of interest (Cooper & Schindler, 2008). To test content validity, I would use the instrument to make......

Words: 738 - Pages: 3