AICPA财务会计与报告（FAR）Agency.pdf

Regulation Module 29: Agency Instructor: Helen 08/23/2009 1 M29 Agency A. Characteristics B. Methods of Creation C. Authority D. Capacity to Be Agent or Principal E. Obligations and Rights F. Termination of Principal-Agent Relationship 2 A. Characteristics of Agency 3 A Characteristics 1. Definition of Agency Principal Agent  A relationship between 2 parties, whereby one party (agent) agrees to act on behalf of the other (principal). 2. Principal vs. Agent a) Agent is subject to control of principal b) Agent is a fiduciary and must act for the benefit of principal c) Agent ¡s specific authority is determined by the principal but generally agent has authority to bind the principal contractually with 3rd parties 4 A Characteristics 3. Employee vs. Independent Contractor a) A Brief Introduction Employee (agent) Independent Contractor Employer controls methods of work Employer controls results only Subject to employer¡s regular supervision No supervision Full time Part time Employer provides tools and facilities By him/her self Compensated on a timely basis Compensated on project basis