Existence

The assertion of existence is the assertion that the assets, liabilities and shareholders' equity balances
appearing on a company's financial statements actually exist as stated at the end of the accounting
period that the financial statement covers. For example, any statement of inventory included in the
financial statement carries the implicit assertion that such inventory exists, as stated, at the end of the
accounting period. The assertion of existence applies to all assets or liabilities included in a financial
statement.

Completeness

The assertion of completeness is an assertion that the financial statements made are thorough and
include every item that should be included in the statement for a given accounting period. For example,
the completeness of transactions included in a financial statement means that all transactions included
in the statement occurred during the accounting period that the statement covers, and that all
transactions that occurred during the stated accounting period are included in the statement. The
assertion of completeness also states that a company's entire inventory, even inventory that may be
temporarily in the possession of a third party, is included in the total inventory figure appearing on a
financial statement.

Rights and Obligations

The assertion of rights and obligations is a basic assertion that all assets and liabilities included in a
financial statement belong to the company issuing the statement. The rights and obligations assertion
states that the company owns and has the ownership rights or usage rights to all recognized assets. In
regard to liabilities, it is an assertion that all liabilities listed on a financial statement are liabilities of the
company and not of any third party.

Accuracy and Valuation

The assertion of accuracy and valuation is the statement that all figures presented in a financial
statement are accurate and based on proper valuation of assets, liabilities and equity balances. For
example, the assertion of accurate valuation regarding inventory states that inventory is valued in
accordance with the International Accounting Standards Board's IAS 2 guidelines, which requires
inventory to be valued at the lower figure of either cost or net realizable value. The financial assertion of
accuracy and valuation states that the different components of a financial statement, such as assets,
liabilities, revenues and expenses, have all been properly classified within the statement.

Presentation and Disclosure

The final financial statement assertion is that of presentation and disclosure. This is the assertion that all
appropriate information and disclosures regarding the company's financial statement are included in the
statement, and that all the information presented in the statement is presented in a fair and clear
manner that facilitates ease of understanding the information contained in the statement.