What characteristic of financial reporting ensures that accounting principles remain constant from year to year?

The characteristic of financial reporting that ensures accounting principles remain constant from year to year is consistency. This principle is fundamental in maintaining uniformity in the application of accounting methods and practices over time, which allows users of financial statements to compare financial performance across different periods effectively.

When consistency is upheld, stakeholders, including investors and analysts, can derive meaningful insights from the trends in financial data, as they are essentially comparing "apples to apples." If accounting practices were to change frequently, it would lead to discrepancies and confusion, making it difficult to ascertain whether changes in financial results are due to actual operational changes or merely to changes in accounting procedures.

This principle also supports transparency and credibility in financial reporting, as it provides assurance to users that the financial information presented can be trusted to reflect the underlying economic reality of the entity over time.