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
Review the budget below and answer the questions following the budget. FINANCIAL ACCOUNTING—STATEMENT OF REVENUE AND EXPENSES Statement of Revenue and Expenses for Group Practice f

what are the sources of business finance?

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

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

Fixed income security can be defined as the financial obligation of an entity (known as the issuer), which promises to pay a specified amount of money on a pre-sp

Stock Split and Reverse Split This is whereas a block of shares is broken down into smaller units or shares hence the number of ordinary shares rises and their respective par

ksklklsdfmklsnakakngjkalkgblakbgklabgklagkbaskgbljas a kalks las lgaskgbak a lv aslglaksglas la sla

Petroleo Brasileiro (PBR) has just issued 1M one year bonds. Each bond hasa face value of1,000 Reais. Owners of the bonds are entitled to receive $R 1000 back at the end of the yea

Please describe the trade-off theory of capital structure and how it vary from the Modigliani and Miller theorem with taxes.