A local Little Rock CPA weighs in with business accounting advice:
FASB Statement of Concepts - Even objectives that are oriented more towards stewardship are concerned with decisions. The broader stewardship use of accounting, which is concerned with the efficiency, effectiveness, and integrity of the steward, helps stockholders or other financially interested parties (for example, bondholders) to evaluate the management of an enterprise. But that would be a pointless activity if there were no possibility of taking action based on the results.
All elements are defined in relation to a particular entity, which may be a business enterprise, an educational or charitable organization, a natural person, or the like. An item that qualifies under the definitions is a particular entity's asset, liability, revenue, expense or so forth. An entity may comprise two or more affiliated entities and does not necessarily correspond to what is often described as a legal entity, as is the case with many Little Rock CPA firms. The definitions may also refer to "other entity" or "entities other than an enterprise," which may include individuals, business enterprises, not-for-profit organizations in Little Rock, and the like.
As an example - employees, suppliers, customers or beneficiaries, lenders, stockholders, donors, and governments are all other entities to a particular accounting entity. A subsidiary company that is part of the same entity as its parent company in consolidated financial statements is labeled an "other entity" in the separate financial and accounting statements.
Furthermore, assets are typically defined by accounting firms in Little Rock as probable future economic benefits obtained or controlled by a particular entity as a results of past transactions or events.
Little Rock zip codes: 72002, 72103, 72135, 72201, 72202, 72204, 72205, 72206, 72207, 72209, 72210, 72211, 72212, 72223, 72227