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

Market is in equilibrium, You are taking an investment in the common stock ...

You are taking an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1=2.00). The stock has a bet

Real Estate Finance - Real options valuation, I need to understand a practi...

I need to understand a practice question for exam, but I only have a partial solution. I need a more detailed solution, so can understand how to arrive at the answer. The problem

Evaluate the fair value of the stock, Lavista Ltd is a leading music entert...

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

Calculate the current price of the common stock, Church Inc. is presently e...

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% f

Working Capital, AsStudents will analyze and synthesize the financial repor...

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

Describe the accruals-based financial statements, On 1 January 2008, a youn...

On 1 January 2008, a young artist called Michelangelo signed a contract with a charity named Art Angels, which supports young artists to do large projects. The agreement requires M

What are the advantages of placement, What are the Advantages of placement ...

What are the Advantages of placement Placement has the below benefits: (i) Timing of issue is significant for successful floatation of shares. In a depressed market cond

Required barrels of water per day, In the present case, we need to take a d...

In the present case, we need to take a decision about implementing one of the available two options, based on various factors. The available two options are either to complete a se

Draw a budget constraint , The price of bread is $0.50 per pound, and the p...

The price of bread is $0.50 per pound, and the price of butter is $0.25 per ounce. Channing spends all of her income, buying 12 pounds of bread, 7 ounces of butter, and nothing els

Goods and service tax-business activity statement, Asset: - An asset stand...

Asset: - An asset stands for an item of value owned and controlled by an organization which can generate revenue for the organization or can help in generating the organization re

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