Erin Company applies the same accounting treatment to similar events from period to period. Erin Company is exhibiting which of the following qualities as described by the International Accounting Standards Board's (IASB's) Conceptual Framework?
A) Verifiability.
B) Consistency.
C) Predictive value.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

Consistency is one of the qualitative characteristics of useful financial information according to the IASB's Conceptual Framework. This means that accounting policies and procedures should be applied consistently from one period to the next in order to enhance the comparability of financial statements over time.

Erin Company Applies the Same Accounting Treatment to Similar Events