Conducting Inventory of Assets and Liabilities is the process of verifying and recording the physical presence, condition, and value of all assets (real estate, equipment, inventory, and other tangible assets) and liabilities (debts, obligations, loans, and other financial commitments) of an organization at a specific point in time.

The main goals and objectives of conducting an inventory of assets and liabilities include:

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  Establishing the accurate quantity and value of the company's assets and liabilities to confirm their reliability in financial reporting.

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  Verifying the consistency of information on assets and liabilities in the accounting system with their actual status.

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  Identifying potential errors, losses, damages, or falsifications in the accounting of assets and liabilities.

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  Assessing the company's financial stability and reliability, as well as identifying potential risks.

The inventory of assets and liabilities is typically conducted periodically, at the end of the financial year or other designated periods, and may also take place during a change in company ownership, reorganization, or merger.

Upon completion of the inventory process, a report is compiled with the results of the verification, which can be used for accounting, reporting, and making financial decisions by the company.