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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:
Determine the Present Value of An Annuity and give explanation of this topic?????
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Example of Market Model Illustration: For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as: 1998 Shs. 1999 Shs.
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Distribution Policies Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)
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