accounting entity
Definition
Clearly defined economic unit which (1) engages in identifiable economic activities, (2) controls economic resources (for which accounting records are maintained and periodic financial statements are prepared) and (3) is distinct from the personal dealings of its owners or employees. To ensure that the fundamental accounting equation always refers to the same distinct entity the boundaries of the unit, once established, must not be changed arbitrarily. Also called reporting entity.
accounting entity is in the Accounting & Auditing, Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
accounting entity appears in the definitions of the following terms: accounting policies, accounting change, fund, combination and reporting entity
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