ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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PROPRIETARY THEORY Definition
PROPRIETARY THEORY is where no fundamental distinction is drawn between a legal entity and its owners, i.e. the entity does not exist separately from the owners for accounting purposes. The primary focus is to report information useful to the owners, and therefore the financial statements are prepared from their perspective. See ENTITY THEORY.
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SUBSIDIARY is a company whose voting stock is more that 50% owned by another company.
AUDIT DOCUMENTATION see WORKING PAPERS.
