What is Objectivity Concept?
The term objectivity is used to describe the way financial information is presented in records and financial statements. It stresses the importance of providing accurate & credible information that is free from personal bias and extrinsic influences. Objectivity guarantees that financial reporting accurately reflects a company’s true financial position, increasing transparency, and building trust with investors, creditors, and regulators. The objectivity concept ensures that accounting and financial reporting adhere to objectivity principles. In this way, objectivity helps preserve the integrity of a company and facilitates fair evaluation of a company’s performance which contributes to making informed decisions in the business world.
Table of Content
- How Objectivity Concept Work?
- Importance of Objectivity Concept
- Examples of Objectivity Principle
- Advantages of Objectivity Concept
- Disadvantages of Objectivity Concept
- Conclusion