An obligation to give an account. In the context of limited companies, it's assumed that the directors are accountable to the shareholders, fulfilled partially through annual reports and accounts.
An agency agreement is a contract establishing a relationship where one party, the agent, is authorized to act on behalf of another party, the principal, for specific tasks or purposes, often involving business transactions.
Agency by Necessity is a legal concept where an agency relationship is recognized by courts, allowing one party to act on behalf of another in emergency situations related to essential needs.
An in-depth look into the dynamics and implications of the agency relationship within an accounting framework, focusing on costs, monitoring, and potential conflicts of interest between principals and agents.
An agent is a person appointed by another person, known as the principal, to act on his or her behalf. Agents have the authority to perform tasks or make decisions as specified by the principal.
Implied Agency occurs when the words and actions of the parties indicate that there is an agency relationship, even if no formal agreement has been made.
The term 'principal' in accounting can refer to either the initial sum of money on which interest is paid or to a person who has authorized another to act on their behalf, especially in the context of an agency relationship.
Stewardship is a traditional approach in accounting that emphasizes the duty of stewards or agents, such as company directors, to provide accurate and reliable financial information concerning resources they control but do not own, usually for the proprietors or shareholders.
