Other Accounting Principles

Objectivity principle accounting guideline that requires financial statement information to be supported by independent, unbiased evidence rather than someone's opinion; objectivity adds to the reliability, verifiability, and usefulness of information.

Full disclosure principle the accounting principle that requires financial statements (including the notes) to report all relevant information about the operations and financial position of the entity.

Revenue recognition principle provides guidance on when revenue should be reflected on the income statement; the rule includes three guidelines: (1) revenue must be recognized at the time it is earned; (2) the inflow of assets associated with revenue may be in a form other than cash; and (3) the amount of revenue is measured as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services.