Financial Representation
Definition
A statement made by the company to an investor, in any form, about the company's financial position, performance, or prospects that the investor is entitled to rely upon. Financial representations made in investment documents are typically warranted by the company and, if materially inaccurate, may give rise to legal claims. All financial representations must be consistent with the financial data room materials.
Common Misapplication
The most common misapplication is failing to recognise that verbal statements made in investor meetings constitute financial representations in addition to written statements in formal documents. A figure stated verbally in a meeting and later found to be inconsistent with the financial records creates the same legal and relational risk as an inaccurate written representation.
FFI Standard Reference
This term is defined and applied in Book 5, Section 5.4: The Financial Due Diligence Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Financial Representation. https://ffistandard.org/glossary/financial-representation/. 2026.