Principle of Objective Evidence
Definition and Explanation
The principle of objective evidence (or principle of objectivity) states that no accounting record should be created unless it is supported by independently verifiable (i.e., objective) evidence.
Generally, such evidence is in writing or should be reduced to writing before an accounting entry is made.
Purchase of larger value such as land, building, and vehicles are generally supported by elaborate legal documentation, including title deeds, sale deeds, and so on.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.