[1][2] This enables the management to draw important conclusions regarding the working of the concern over a longer period.
If different accounting procedures and processes are used for preparing financial statements of different years then the results will not be comparable because these will be based on different postulates.
The concept of consistency does not mean that no change should be made in accounting procedures.
If a change has been made in dealing with two aspects of the same statement then it will be vertical inconsistency.
Third dimensional consistency will arise when financial statements of two different organizations, in the same industry, are compared.