Consistency of Presentation

The presentation, and classification, of items in the financial statements shall be retained from one period to the next unless:
(i) it is apparent, following a significant change in the nature of the undertaking’s operations, or a review of its financial statements, that another presentation would be more appropriate, having regard to the criteria for the application of policies in IAS 8; or
(ii) a Standard requires a change in presentation.

EXAMPLE-consistent policies
Using different measurement systems of inventory (FIFO and weighted-average cost are permitted by IFRS) generates different results. Consistent use of one method is essential to allow users to compare one period with another.

There should be no change of method, unless a Standard decrees it, or it would help users.

If other undertakings, in the same industry, use particular accounting policies, users will benefit if yours are consistent with theirs, to enable comparison.

A significant acquisition (or disposal), or a review of the presentation of the financial statements, might suggest that the financial statements need to be presented differently.

An undertaking changes the presentation of its financial statements only if the new presentation provides information that is reliable, and is more relevant to users, and the revised structure is likely to continue, so that comparability is not impaired.