Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Questions - Page 62: 8


From a financial accounting perspective, comparability facilitates comparison of financial information between two companies at a particular point in time. Consistency on the other hand, facilitates comparison of information between two or more different companies at different points in time.

Work Step by Step

On a lighter note, comparability helps users of financial accounting information identify the real similarities as well differences in economic events between enterprises. Consistency helps users of financial accounting information to apply the same accounting treatment to similar events that is from time to time.
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