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An accounting concept attempting to ensure that any subjective actions taken by the preparer of accounts are minimized. The aim of the rules and regulations required to achieve objectivity is that users should be able to compare financial statements for different companies over a period with some confidence that the statements have been prepared on the same basis. One of the major advantages claimed for historical-cost accounting is that it is objective, but necessarily some subjective decisions will have been made.

Subjects: Financial Institutions and Services — Accounting.

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