It expresses that accounting data are subject to verification by independent experts i.e.
there must be documentary evidences of transactions which are capable of verification. Otherwise,
the same will neither be verifiable nor be realisable or dependable. In other words, accounting
data must free from any basic. Because, verifiability and objectivity imply reliability,
trustworthiness, dependability which are very useful for conveying the accounting data and
information furnished in periodical accounting reports and statements. There should always
be some documentary evidences in establishing the truth reflected in the said reports or statements.
Entries which are recorded in accounting from the transactions and data which are
reported in financial statements must be based on objectively determined evidence. The confidence
of users of the financial statement cannot be maintained until there is a close adherence
to this principle, invoices and vouchers for purchases, sales and expenses, physical checking of
stock in hand.
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