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
Which of the following is true with regards to rising interest rates. A. Use long-term loans to take advantage of current low rates. B. The term of the loan is ot impacted by risin

You have just taken out a $220,000 loan for your house at an APR of 7.5% and a 30-year term. Payments are to be made monthly . Two years from now, you refinance at an APR of 5.5%

What are the financial intermediaries? Financial Intermediaries: a. Mutual funds b. Pension funds c. Life insurance companies d. Banks

Assumptions Underlying Percentage of Sales Method The fundamental supposition underlying the use of % of sales method is such, there is no inflation in the economy such is the

Define New Issue Market New Issue Market OR Primary Market New issue market is the segment in which new issues are made.

Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Lavista Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year just ended few days back

Following details are related to three companies which are identical except in terms of ''''r''''. Company ABC Ltd. MNC Ltd. XYZ Ltd. Cost of capital 10% 10% 10% Earn per Share Rs

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci