The Objectivity Principle

The objectivity principle in accounting suggests that the information that is reported in the financial statements should be supported by objective evidence. This means that the amounts of recorded transaction are verifiable. In the conceptual framework of accounting, relevance and reliability are the two fundamental qualitative characteristics of financial information. Verifiability is considered one of four enhancing qualitative characteristics – it helps to add reliability to financial information. The other three enhancing characteristics are comparability, timeliness and understandability.1

Verifiability or objectivity means that different people looking at the same information will arrive at the same values for an economic phenomenon. Information can either be directly verifiable (by counting cash, or checking a bank statement) or indirectly verifiable (by knowing the inputs and the model, formula or other technique used to value or allocate an item). As a result, transactions based on objective evidence must be based on fact, not simply personal opinion or feeling.

Don't use plagiarized sources. Get Your Custom Essay on
The Objectivity Principle
From $8/Page
Order Essay

Typically transactions that are recorded will have what is called a source document. This source document might be a contract or a sales receipt, and shows the amount that was agreed upon by the seller and buyer in the transaction.

In US GAAP, the objectivity principle is found in discussion about when assets, liabilities, revenues, expenses, and the like are to be recognized in the financial statements. For example, the SEC requires that revenue be recognized only if persuasive evidence of an arrangement (such as a sales contract) exists.2  Solutions Available for Instant Download
What does the term self-objectivity mean to you?
What does the term self-objectivity mean to you, and why is it important for leadership?

To continue with the answer check on

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Top Writers 4Me
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Good job! Thank you.
Customer 452487, October 26th, 2021
Thank you so much! I appreciate what you do and all of the great help you've given me!
Customer 452483, September 6th, 2021
Group Dynamics
Great job. I appreciate it.
Customer 452521, November 22nd, 2021
Healthcare Writing & Communications
Perfect! Thank you so much for all of your help!
Customer 452483, October 31st, 2021
Thank you so much! Appreciate it!
Customer 452483, November 8th, 2021
Thank you for your hard work; I enjoyed reading the essay and appreciate your writing.
Customer 452483, July 18th, 2021
Thank you for all of your help and hard work, truly appreciate you guys always being there with my hectic schedule. Thank you again!
Customer 452483, September 20th, 2021
Customer 452483, July 5th, 2021
Well done! I thank you very much!
Customer 452483, July 9th, 2021
Biology (and other Life Sciences)
Power Point Presentation was great, appreciate all of your hard work. Thank you!
Customer 452483, August 9th, 2021
Appreciate all of your hard work! Thank you so much!!
Customer 452483, September 14th, 2021
English 101
Perfect! Very informative! Appreciate all of your hard work! Thank you very much.
Customer 452483, September 22nd, 2021
Customer reviews in total
Current satisfaction rate
2 pages
Average paper length
Customers referred by a friend
20% OFF your first order
Use a coupon TOP20 and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat
Open chat
Chat with us Live Here
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.