5.5 Consistency in applying cost accounting policies
5.5.1 Introduction
Consistency in applying cost accounting policies enables similar transactions to be treated alike. This improves comparability between estimated and actual costs, and with other periods and departments. Such comparisons provide a basis for financial control, cost accountability and evaluating estimation capabilities.
The following sections provide criteria to ensure that departments are consistent when estimating, accumulating and reporting costs, both within and between financial years.
5.5.2 Consistency
A department's cost accounting policies must be consistent, both for estimating costs for external ex-ante reports and for accumulating and reporting actual costs for external ex-post reports.
A department's cost accounting policies must normally not change from one reporting period to another, and must be applied to all cost items of a similar nature.
5.5.3 Changes in cost accounting policies
A department may change its cost accounting policies during the financial year, only if the new policies better reflect its cost behaviour and underlying activities. When such a change is made, the department must provide full disclosure as that phrase is described in section 5.1 of these Instructions ("Disclosing cost accounting policies").
