Accountability and stewardship of family business entities

Introduction
Accounting has been a well-established organisational process for centuries. While over time the specific functions of accounting have evolved in response to prevailing external and internal forces the underlying accounting technology has largely remained intact. The diffusion of this technology to all types of organisations, irrespective of their ownership structures, has been possible because the fundamental purpose of accounting remains that of achieving accountability. Initially operating owners rendered account about their stewardship of enterprise resources to participating families whereas in today's widely held corporations agent-managers report performance to distant principals.

This chapter explores whether current accounting technology fulfils the stewardship and accountability information needs of family business owners. As the influences ...