objectivity principle

Definition

A requirement in accounting whereby the information that is supplied in a company's financial statement must be supported by actual and real evidence versus just simply a personal feeling or opinion. This guideline helps to add reliability to the information.

Use this term in a sentence

You should try and make sure that you follow the objectivity principle so that you know how things are going.

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The objectivity principle helped to ensure that the quality of the accounting records was excellent and no inaccuracies were recorded.

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In keeping with the objectivity principle, the company's accountants worked to assemble the necessary proof to reassure the investors of the company's financial integrity.

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objectivity obligate