Principle of uniformity


The principle of uniformity is an accounting standard which indicates that once an accounting or valuation criterion has been applied, it must be maintained over time.

Companies must account for their activity and for this there are a series of rules. What this principle indicates is that we cannot apply criteria to convenience. For example, if we decide to apply a certain type of depreciation to an asset, we cannot change it at another time because it is better for us.

In other words, if we choose certain criteria (and established by accounting standards) we must maintain those criteria in all transactions of the same type.

However, it is possible to change a criterion at a certain moment, but it must be justified in memory and explain what has motivated this change.

Example of the principle of uniformity

Let's imagine that we buy a machine and the rule allows us to make an accelerated depreciation. However, the second year we decided to change the constant amortization method, and the third year we returned by performing accelerated amortization again. Although these types of amortization are contemplated in the accounting standards, we would not be complying with the principle of uniformity.

Another example would be valuing two exactly the same machines with the same characteristics and purchased at the same price, in a different way. Again, unless there is justification, they should be valued in the same way.

However, as we have already indicated, this change could be justified but always including it in the memory and giving the pertinent explanations.

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