Stewardship accounting, Finance Basics

Stewardship Accounting

Shareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year render an explanation on the annual particular meeting of how the financial resources were operated.  This is identified stewardship accounting.

1. In the light of the above shareholders are the principal though the arrangement is the agents.

2. Agency problem arises because of the divorce or divergence of interest among the principal and the agent. The conflict of interest between shareholders and management is identified agency problem in finance.

3. There a variety of nature of agency relationship in finance exemplified as follows like:

  • Management and Shareholders
  • Creditors and Shareholders
  • The Government and Shareholders
  • Auditors and Shareholders
  • Headquarter office and the Branch or subsidiary.
Posted Date: 1/29/2013 1:22:43 AM | Location : United States







Related Discussions:- Stewardship accounting, Assignment Help, Ask Question on Stewardship accounting, Get Answer, Expert's Help, Stewardship accounting Discussions

Write discussion on Stewardship accounting
Your posts are moderated
Related Questions
Valuation of Securities The previous methods were perfect for valuing the entire business however it is also essential to ascertain the value of part of a business namely shar

Who is Floor Broker Floor brokers aren't many in number. They execute orders for fellow  members  and  receive  a  share  brokerage  commission  charged  by  a commission broke

Profit maximization - Objectives of Business Entity Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest poss

Define the term contractual savings depository institutions. Contractual savings institutions: Contractual savings institutions obtain funds at periodic intervals onto a

Market Model - Methods of Computing Cost of Capital This model is utilized to establish the percentage cost of ordinary share capital cost of equity (K e ). If an investor is

traditional financial management are concerned with raising funds and optimum utilisation.do you agree?explain.

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

Opportunity Cost or Residual Loss It is the cost due to the failure of both parties to act optimally like as in example of A. Lost opportunities because of incapability to

how to calculate cash flow? What components are required to calculate it ?