... have big impact on the value of the asset. By putting the above point into consideration the net profit value will vary because you would be inconsistent in depreciating the assets. This will cause confusion and companies might over value or under value their assets. By using the consistency concept the users of the accounts can make direct comparisons between the financial statements of different years consistently. FRS 15 comes hand in hand with this concept because its objective is to ensure that tangible fixed assets are accounted for on a consistent basis. It also states that the company has to be consistent with its previous accounting policies such as the ones that are stated in the consistency concept. This FRS tells you that all tangible fixed assets need to be re-valued and it also contains a need for them to be re-valued every year consistently. This FRS has the ...

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