Both the general principles and specific rules, valuation principles, which are used for the formulation of the financial statements should be applied uniformly from one period to another. This will allow a better comparison of financial statements in different periods of a going concern. Should any material changes to the application of general principles and specific standards, which would affect the presentation of financial statements should be indicated by an explanatory note. To read more click here: john k castle. This principle states that companies making use of a method for presentation of financial statements must be consistent with it, achieving uniformity in the presentation of the information contained in the accounting records from one period to another. If a company makes frequent changes in the method used in each short period, difficult to interpret and compare financial statements, and also show substantial changes in the results presented.
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