allocation vs classification

Allocation is an assertion listed as relevant to balances. I always think of it as relating to manufactured inventory and work-in-progress where you have to ensure that you allocate the right material, production labour and factory overheads to the cost of the goods.

Classification is listed as an assertion relevant to transactions and events and to presentation and events. I think of that as ensuring rent is classified to the rent account etc.

I have always found the division of the assertions into the three classes very confusing and have never had a proper explanation. For example, it is not clear why accuracy is listed as an assertion for transactions and events but not for year end balances. I should have thought that, for example, the figure of cash should be accurate.