Q. Verifiability of Financial information?
Verifiability Financial information has verifiability when independent measurers are able to substantially duplicate it by using the same measurement methods. Verifiability eradicates measurer bias. The necessity that financial information be based on objective evidence arises from the demonstrated needs of users for reliable unbiased financial information. Unbiased information is particularly necessary when parties with opposing interest's credit seekers and credit grantors rely on the same information. If the information is demonstrable this enhances the reliability of information.
Financial information is never completely free of subjective judgment and opinion it always possesses varying degrees of verifiability. Cancelled invoices and checks support some measurements. Accountants are able to never verify other measurements such as periodic depreciation charges for the reason that of their very nature. Therefore financial information in many instances is verifiable merely in that it represents a consensus of what other accountants would report if they followed the same procedures.