Accounting principles and Policies

9. Objective Concept OR Objective Evidence Concept:
According to this concept, the accounting data and accounting information should be verifiable and free from personal bias. For example, in the case of Fixed Assets, the amount can be verified by purchase bill etc. They should be objective (out of one’s mind), not subjective (of one’s mind).

However, there are some areas in Accounting, where evidence cannot be available to verify information and where estimations are made. For example, the estimation of depreciation, estimation of Bad and Doubtful debts, etc. These estimates should be free any bias and should be based on reasonable analysis.

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