Q. Neutrality of accounting information?

The Neutrality signifies that the accounting information must be free of measurement method bias. The primary concern must be relevance and reliability of the information that results from application of the principle not the effect that the principle may perhaps have on a particular interest.

Non-neutral accounting information nepotism one set of interested parties over others. For instance a particular form of measurement might favour stockholders over creditors or vice versa. To be neutral accounting information should report economic activity as faithfully as possible without colouring the image it communicates for the purpose of influencing behaviour in some particular direction. Accounting standards aren't like tax regulations that deliberately foster or restrain certain types of activity. Verifiability seeks to eradicate measurer bias neutrality seeks to eliminate measurement method bias.