The classical notion of stewardship

Stewardship means custodianship or being a keeper.

In accounting, classical notion of stewardship applies to the valuation and the stewardship role.

Valuation 

This gives emphasis on how accounting measures the value of the firm.  

This would mean that whatever is the condition of the economy, the firm's value can still be accounted and known.   

When the markets are perfect and complete, the assets and the changes in the book value of owner's equity can be measured at their market value. 

While, when the markets are not perfect and complete, accounting can still be used to approximate the change in the value of the entity.

Stewardship

Essentially, accounting is an information-provider or data-provider. Accounting is an steward of economic and financial information about the entity.

Basically, the economic information obtained from accounting and financial databases are used for monitoring businesses and provides information on how the management performs and where the business is going.

Useful information are presented thru financial statements and internal financial reports.  From these statements and reports, business owners and managers can gauge and measures the operational performance of the business as a whole.  The information provided by accounting are indicators of performances of the people inside the organization.


In short, Stewardship of the firm affects the value of the firm. Accounting information is used to assess, monitor and control the activities of the entity.