Conceptual Framework for Financial Reporting

Verifiability
Verifiability helps assure users that information faithfully represents the
economic phenomena it purports to represent. Verifiability means that
different knowledgeable and independent observers could reach consensus,
although not necessarily complete agreement, that a particular depiction is a
faithful representation. Quantified information need not be a single point
estimate to be verifiable. A range of possible amounts and the related
probabilities can also be verified.
Verification can be direct or indirect. Direct verification means verifying an
amount or other representation through direct observation, for example, by
counting cash. Indirect verification means checking the inputs to a model,
formula or other technique and recalculating the outputs using the same
methodology. An example is verifying the carrying amount of inventory by
checking the inputs (quantities and costs) and recalculating the ending
inventory using the same cost flow assumption (for example, using the first-
in, first-out method).
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Conceptual Framework
© IFRS Foundation
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It may not be possible to verify some explanations and forward-looking
financial information until a future period, if at all. To help users decide
whether they want to use that information, it would normally be necessary to
disclose the underlying assumptions, the methods of compiling the
information and other factors and circumstances that support the
information.
Timeliness
Timeliness means having information available to decision-makers in time to
be capable of influencing their decisions. Generally, the older the information
is the less useful it is. However, some information may continue to be timely
long after the end of a reporting period because, for example, some users may
need to identify and assess trends.