Talk:Entity concept

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[edit] Separate Entity, or Single Entity?

This article is linked from the main Accountancy article, and I'm concerned that this article is talking about the wrong thing.Italic text








Separate Entity appears to be a different name for a company's separate legal personality. This is not an accounting concept, but rather a legal concept relating the limited liability of shareholders.

The accounting concept is "Single Entity" concept, ie that the directors of a company should be held accountable for all the resources that they control, not just the holding company. Unless anyone has a strong objection, I will rewrite this article accordingly later this month. AnthonyUK 16:18, 3 November 2007 (UTC)