Consistency principle: The consistency principle of accounting states that a firm should keep following the same method which it adopted once for preparing financial statements. The firm can only change method if there is any requirement to improve formatting of financial statements, not on a regular basis. To identify: The view of G, the accountant regarding change of inventory valuation method and state whether it is correct or not.

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Chapter 3, Problem 24Q

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Consistency principle: The consistency principle of accounting states that a firm should keep following the same method which it adopted once for preparing financial statements. The firm can only change method if there is any requirement to improve formatting of financial statements, not on a regular basis.

To identify: The view of G, the accountant regarding change of inventory valuation method and state whether it is correct or not.

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