What is Accounting Entity?

Legal Definition
An Accounting Entity is simply an Entity for which accounting records are to be kept.

The main requirements for something to be considered an "accounting entity" are:

  • It can own property the value of which can be measured in financial terms
  • It can incur debts or liabilities which can also be measured in financial terms
  • It can therefore be assigned a value for its net worth or solvency which is the difference between the two

Examples of accounting entities include corporations, clubs, trusts, partnerships and individuals.
-- Wikipedia
Legal Definition
A unit in economics that engages in activities, controls resources, and is not part of the company. AKA reporting entity.