• Users must be able to compare the financial statements of an entity through time in order to indentify trends in its financial postion and performance.
• Users must also be able to compare the financial statements of different entities in order to evaluate their relative financial position, performance and changes in financial position.
• Hence, the measurement and display of the financial effect of like transactions and other events must be carried out in a consistent way throughout an entity and over time for that entity and in a consistent way for different entities.