A Statement of Basic Accounting Theory (ASOBAT) is an influential publication by the American Accounting Association advocating for user-friendly financial statements and emphasizing qualitative characteristics of accounting information.
A document setting out the basic accounting concepts informing International Accounting Standards and International Financial Reporting Standards, serving as a guide in the preparation and presentation of financial statements.
The qualitative characteristics of accounting information ensure that financial reports are as useful and accurate as possible, governed by various standards and frameworks in different regions.
The principle that the reliability (faithful representation) of the financial information provided by a company should be open to confirmation, i.e., that an independent person with a reasonable knowledge of accounting should be able to look at the same data and reach broadly similar conclusions. The International Accounting Standards Board's Conceptual Framework for Financial Reporting recognizes verifiability as a qualitative characteristic that enhances the usefulness of financial information.
