Title: Section 442.7 - Consistency

442.7 Consistency. (1160) Consistency refers to continued uniformity, during a period and from one period to another, in methods of accounting, mainly in valuation bases and methods of accrual, as reflected in the financial statements of an accounting entity, e.g., change from FIFO inventory method to the LIFO method. Consistency is very important to the development and analysis of trends on a year-to-year basis and as a means of forecasting. However, consistency does not require continued adherence to a method of procedure that is incorrect or no longer useful, nor does it preclude a justifiable and desirable change in accounting and reporting methods or procedures unless otherwise specified in this manual. Any such change must be highlighted in submitting reports to HCFA by appropriate footnotes on all schedules which are affected by the change.


VOLUME C (Title 10)