Duhaime's Law Dictionary Accounting Definition: A detailed statement of the debits and credits between parties arising out of a contract or a fiduciary relation. Related Terms: Accounts, Fiduciary The goal in a request for an accounting, is for a financial report called, in law, accounts. In Maxim Integrated Products, in regards to obligations that might be imposed upon directors of a company (who are fiduciaries of a corporation), Justice Ware of the United States District Court wrote: "An accounting is an equitable remedy which allows the court to determine the extent of a misallocation of expenses and the damages resulting therefrom when there is fiduciary relationship between the parties." Earlier, in Bates v Northwestern Human Services, Justice Walton, of the same court, had used these words: "An accounting is a detailed statement of the debits and credits between parties arising out of a contract or a fiduciary relation." REFERENCES: Bates v. Northwestern Human Services Inc., 466 F. Supp. 2d 69 (United States District Court, District of Columbia, 2006) In re Maxim Integrated Products Inc., 574 F. Supp. 2d 1046 (United States District Court at San Jose, 2008) Categories & Topics: Duhaime's Trusts, Wills, Estates and Probate Law Dictionary Always looking up definitions? Save time with our search provider (modern browsers only) If you find an error or omission in Duhaime's Law Dictionary, or if you have suggestion for a legal term, we'd love to hear from you!