In order to bring the results of accounting perfectly in practice & to know and compare the accounting practices of various business concerns, the following accounting conventions are also useful.

1. Consistency: Business concern should follow uniform accounts for all years. This is useful as and when the entrepreneur wants to compare the present year performance with that of last year or with different firms. This does not mean that adjustments are not possible. Any change or deviation in the practice & its impact should be clearly defined in advance. For ex: if the a/c year is 1^st April – 31^st March in one year, that should not be changed to 1^st April – 31^st December in another year, without clearly defining its objective.

2. Discloser: The results of the business have to be disclosed from time to time to the shareholders and creditors of the business, Govt., employees etc., However, it is the prime responsibility of the Board of Directors of the company to disclose the business results in a systematic and comprehensive way to all concerned. It is essential to disclose even, every minute information, which has a clear-cut impact on assets, debts and profits of the business.

3. Relevance: According to this convention, the firm should give relevant accounting information as and when required documentary proof like invoices, vouchers, cash memos etc.,

4. Feasibility: The practice of comparing expenses incurred for the business transactions with that of the income received during the year by the firm is called feasibility. According to this convention expenditure should be less than the income.

5. Conservation: According to this convention the accountant has to record the actual financial position. While recording the accounts, the accountant should not give different picture of the business either by inflating or deflating, the value of transaction. In this convention, to be on the safe side, the accountant record all the anticipated losses, however ignores the anticipated profits. For ex: While taking the value of the closing stock, the market cost or actual cost whichever is less is taken in to the books of accounts.