Stewardship accounting, Finance Basics

Assignment Help:

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.

Related Discussions:- Stewardship accounting

Debentures of middle asia, Debentures of Middle Asia Reasons behind Un...

Debentures of Middle Asia Reasons behind Unpopularity of Debentures of middle Asia's Financial Market as: i)Their par price is an extremely high value and as such they are

Shareholders - measuring business performance, Shareholders - Measuring Bus...

Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival.  For this cause they will need

Acceptance rule of irr, Acceptance Rule of IRR IRR will accept a ventu...

Acceptance Rule of IRR IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recogn

Five common mistakes in capital budgeting, Please list five common mistakes...

Please list five common mistakes in capital budgeting that could either overstate or understate the value of a project.Bonus: explain the relationship between the errors above and

Dividend payout ratio, Dividend Payout Ratio Dividend payout ratio = (...

Dividend Payout Ratio Dividend payout ratio = (DPS/EPS) x 100                                     = Dividend paid/ Earning to ordinary shareholder This is the reci

Vincent mind set, if u were the professor wht your opinion about vincent mi...

if u were the professor wht your opinion about vincent mind stage

Creditors trade - measuring business performance, Creditors Trade - Measuri...

Creditors Trade - Measuring Business Performance Creditors Trade These are interested in the company's capability to meet their short-term obligations as and whenever the

Explain about the new issue market, Explain about the New Issue Market OR P...

Explain about the New Issue Market OR Primary Market New issue market is the segment in which new issues are made. In new issue market, new issues may be made in 3 ways name

Price - sales of goods, Price - Sales of Goods Like where section 10 p...

Price - Sales of Goods Like where section 10 provides such the price for goods may like fixed by like: (i) Contract; and one is (ii) The manner provided within the contr

Determine market price of a share, What is the market price of a share of s...

What is the market price of a share of stock for a firm that pays dividends of $1.20 per share, has a P/E of 14, and a dividend payout ratio of 0.4?  market price of a share

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd