Purports to Represent

Verifiability
is an ingredient of reliability.

                                  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
also can 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 (FIFO) method



)                                                      .
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 normally would be necessary
                                                       to disclose the underlying assumptions,
                                                    the methods of compiling the information,
                                and other factors and circumstances that support the information.